Tribal leaders and commercial sportsbooks introduced ideas Tuesday that would legalize California sports betting exclusively under tribal control, marking the most detailed attempt yet to restart negotiations between tribes and national betting operators.
The discussion at the Indian Gaming Tradeshow and Convention in San Diego included the Sports Betting Alliance Tribal Advisory Council — a group made up of representatives from four commercial sportsbook operators (FanDuel, DraftKings, BetMGM, and Fanatics) — and six leaders from among California’s 109 federally recognized tribes.
Under an early framework obtained by LSR, the tribes would form a single statewide entity that would hold all licenses and maintain ownership of the online sports betting market. That entity would then contract with to-be-determined sports betting brands to offer mobile wagering platforms in California. Operators would pay a uniform revenue share, including a minimum annual guarantee to each tribe, with additional upside based on performance.
The initiative would be tribally led and tribally owned but fully paid for by sportsbooks, according to multiple participants in the meeting. No formal agreements were signed, and tribal leaders emphasized that significant work remains before any potential ballot initiative could move forward, possibly in 2026 or later.
New Conversations, Old Challenges
The proposal is the product of months of discussion, including a meeting arranged by the SBA Tribal Advisory Board earlier this year in Las Vegas. Tuesday’s session was intended to expand those talks, offering all tribes in the state a chance to hear updates, raise concerns, and help shape what legal online sports betting might look like, according to the tribal advisory board.
“The Tribal Advisory Board was formed by the Sports Betting Alliance with a clear purpose: to bring tribes together to learn more about sportsbook operations and to explore how this industry can be shaped to serve tribal interests,” said Daniel Salgado, former tribal chairman of the Cahuilla Band of Mission Indians and a member of the SBA’s advisory group.
Salgado added that the group is committed to “protecting Tribal Government Gaming by ridding the market of illegal operators” and ensuring any legalization efforts align with tribal sovereignty.
California Sports Betting Agreement Remains ‘A Long Way Off’
Tribal leaders who participated stressed that the talks remain preliminary. Jeff Grubbe, former chairman of the Agua Caliente Band of Cahuilla Indians, described the meeting as a “valuable opportunity” but warned that “a final agreement remains a long way off.”
“To the best of my knowledge, no agreements have been reached between any tribes and commercial operators,” Grubbe said in a statement. “This process will be tribally driven and grounded in the protection of existing brick-and-mortar operations.”
Operator Commitments And Tribal Control
The plan was presented as a way to completely remove financial risk from the tribes, with operators funding the cost of a potential ballot initiative and competing for access through contracts.
The number of licensed platforms would likely be limited. While other operators could theoretically compete for inclusion, the tribes would ultimately decide how many and which brands are permitted.
“This is our state; it’s going to be at our speed,” Wilton Rancheria Chairman Jesus Tarango, who is not on the SBA advisory board, said during the session. “But let’s talk about it. Let’s get the issues on the table. How is it that we haven’t got this done yet?”
No Consensus On Timeline, Legal Structure
James Siva, chairman of the California Nations Indian Gaming Association, pressed SBA representatives on whether the model would fall under the Indian Gaming Regulatory Act, which governs tribal gambling in the US.
“We’ve looked at this ourselves,” Siva told FanDuel’s Frank Sizemore and DraftKings’ Jeremy Elbaum. “Is this inside or outside of IGRA?”
Elbaum acknowledged uncertainty, noting “there are nuances from IGRA that could break this,” and added that SBA’s priority is a model with no cost to Indian Country and full tribal control.
Salgado, who also served as CNIGA secretary, said IGRA “isn’t a godsend for everyone” and suggested that the tribes and industry might pursue a commercial agreement rather than alter tribal-state gaming compacts to allow for digital wagering.
California Sports Betting A Long Time Coming
The proposed framework arrives more than two years after California voters overwhelmingly rejected two competing ballot measures to legalize sports betting in 2022. Proposition 26, backed by tribes, sought to authorize in-person wagering at tribal casinos. Proposition 27, backed by commercial online sportsbooks, would have legalized statewide mobile sports betting.
Both measures failed decisively — Prop 27 received just 16% support — and the two sides spent a combined $400 million campaigning against each other.
Since then, tribal leaders have expressed caution about returning to the ballot too soon. At a January 2025 panel at ICE Barcelona, Siva said the tribes are “too far to go to rush into this complex sports betting which is tied to iGaming.” Other tribal leaders pointed to 2028 — not 2026 — as a more realistic timeline.
California tribes currently enjoy exclusivity over Class III gaming in the state. Any legislative path to legalize online sports betting would likely require a constitutional amendment, meaning another statewide vote.
