Discussions unfold between tribal leaders in California concerning the state's opposition to Daily Fantasy Sports (DFS) and sweepstakes operators
California Tribes Push Back Against Daily Fantasy Sports and Sweepstakes Operators
California's tribal governments are taking a firm stand against daily fantasy sports (DFS) and sweepstakes sites, viewing them as illegal gambling operations that infringe on their exclusive gaming rights under state law. The California Nations Indian Gaming Association (CNIGA) has called for stricter enforcement against these unlawful operators, citing a decade of illegal DFS operations generating millions without accountability.
The legal stance on DFS is clear. In mid-2025, California Attorney General Rob Bonta issued an opinion declaring DFS as illegal under state law. This opinion aligns with the tribal perspective, as California residents voted against sports betting legalization in the 2022 ballot.
Tribal leaders view DFS and potential sports betting expansions as existential threats to their casino operations and gaming revenue. They have historically resisted gambling expansions that could undermine their monopoly granted through tribal-state compacts.
DFS operators, such as Underdog Fantasy, have attempted to adapt by changing game formats, switching from operator-versus-player to peer-to-peer models. However, tribes and the AG’s office could still consider these platforms as facilitating illegal wagering since the operator maintains a cut of entry fees, keeping enforcement pressure on.
Tribal leaders are engaging politically and legally, with some tribal representatives indicating readiness to sacrifice or negotiate over DFS if it protects tribal interests long-term. They are preparing for complex enforcement actions and continued political/legal battles to maintain control over gambling in California.
Another concern is prediction-market operators like Kalshi using the Commodities Futures Trading Commission to circumvent enforcement, which could make state and tribal regulated sports betting industries irrelevant. Tribal leaders worry that even with the law enacted in the future, it may not be effectively enforced.
The lack of enforcement by California authorities has enabled sweepstakes operators to continue their operations in the state. Underdog Sports tried to sue Bonta to stop the opinion from being issued last week. However, the California Senate has advanced a measure to curtail online sweepstakes operators, and Assembly Bill 831, a proposal backed by tribes, aims to shut down online sweepstakes gambling.
The Indian Gaming Association hosted a webinar discussing California's tribal-led efforts to rein in fantasy sports and sweepstakes sites. During the webinar, IGA Conference Chair Victor Rocha, IGA CEO Brian Giles, tribal attorney Scott Crowell, and tribal gaming attorney Joe Webster discussed the high demand for online gaming in California and the need for a legal and regulated environment to prevent players from seizing on the illegal market.
Tribes have jurisdiction to issue cease-and-desist letters for activities on tribal lands. However, operators may geofence their product off tribal lands, a tactic that tribal governments are prepared to challenge. The key issue remains enforcement against sweepstakes operators, who are not regulated and based offshore.
References: 1. California Tribes Fight Daily Fantasy Sports 2. California Tribes Call for Action Against Daily Fantasy Sports 3. California Attorney General Declares Daily Fantasy Sports Illegal 4. California Tribes Resist Gambling Expansions 5. Tribes and DFS Operators Face Off in California
Sports-betting operators, given the legal declaration by California Attorney General Rob Bonta, may find themselves in conflict with California's tribal governments, as sports-betting is considered illegal under state law in California. Despite daily fantasy sports (DFS) operators attempting to adapt their platforms, California's tribes view these modifications as mere attempts to facilitate illegal wagering.
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