Fewer 2024 political developments would be more unwelcome than a rerun of California‘s 2024’ sports betting debacle. Big Gaming is wisely sitting this election cycle but enterpreneur Kasey Thompson is rushing in where angels fear to tread. His ballot initiative would sanctify tribal-only sports betting, albeit via the dubious gambit of baptizing illegal, offshore sports books as legitimized, onshore providers and wedding them with tribes. Full disclosure: I edited Thompson’s All In magazine back in the day.
To say Thompson’s idea went over like a lead balloon with its intended beneficiaries would be an understatement. When it first dribbled out, the influential Victor Rocha deemed it a non-starter and called Thompson a “moron” for good measure. If there’s one thing California voters like less than tribal sports betting (33% support), it’s private-sector sports betting (18% support). Thompson hopes to nullify that by melding the two into one big alliance. The central facet of his proposal is to legitimize the off-shore, illegal likes of Bovada and Sports 411, who Thompson estimates are doing double the biz of the legal market.
Thompson’s aim is to create a fully tribal-owned consortium that shares revenue from OSB with all 109 California aboriginal bands. Whether that’s doable is an open question. Once the offshore assets are legal in California—a problem Thompson has essentially handwaved—tribes would (in theory) allow the already-legal operators like FanDuel and DraftKings into the state … but only as part of the same arrangement. Whether the big private-sector boys would go along with this is another thing entirely. The Thompson argument is that publicly traded operators are seeing their share price depressed every year because they’re not in the Golden State, so they’d happily sign aboard. So far that hasn’t happened.
The initial reaction was cool. CNIGA, the powerful tribal lobbying agency, said it would greatly prefer being asked to collaborate on a new initiative rather than receiving dictation from the outside. CNIGA added that it “is deeply disappointed that the sponsors of the two recently filed initiatives did not first reach out to the State’s largest tribal gaming association for consultation and input.” The Pala Band of Mission Indians was quick to say that it “is not involved in either of the initiatives that were filed with the attorney general.” Also, byond what political pundit Brendan Bussmann calls “voter fatigue,” there’s the small matter of having to collect 874,641 valid voter signatures between January and April.
Since early November things have gone from bad to much worse for Thompson & Co. Upon further review, CNIGA—which speaks for 52 tribes—went nuclear on Thompson in mid-December. Wrote Chairman James Siva, “The opposition coming from Indian Country is loud and it is clear. Tribes will not be distracted by outside influences making empty promises. Indian Country will stand firm in protecting our sovereign rights and integrity. We call on the proponents to do the honorable thing and withdraw these flawed initiatives.” A typical, pig-perfuming proposal to use tax proceeds to help provide care for the homeless also didn’t fly with CNIGA. The initiative was amended to direct the entire 25% impost to all tribes was made, but that didn’t placate CNIGA either.
“Thompson told PlayUSA he thought the amended initiative would bring support from a majority of California tribes,” reported that organ. He thought wrong. 37 tribes went on record in opposition. Blasted Siva, “The proponent of the measures are attempting to divide and conquer tribes by pushing an initiative that attempts to legitimize illicit off-shore operators and putting our governments at risk” Part of Siva’s objection stems from the fact that the baptism of the illegal books would be done separately from the ballot question, part of a proposed side deal between Thompson and the tribes. CNIGA’s response was, in essence, ‘no sale,’: “An aggressive campaign will be waged against these reckless initiatives — like in 2022 which resulted in an 82% NO vote — that harm potential legitimate efforts to authorize sports wagering responsibly in California. Tribal governments will not allow our legitimate and highly regulated operations to be used to support a scheme designed to reward these illegal offshore online gambling companies.”
That’s not an idle boast. Six of the signatories to the letter spent $220 million to rout private-sector Proposition 27 back in 2022. As Pechanga Development Vice President Jacob Mejia told PlayUSA, “Nearly 99% of the funding against Prop 27 is represented in that letter.” Thompson is bucking some very long odds. Our advice is to quit while he’s behind.
Atlantic City Follies: “He brings his hookah. It smells like wood burning, and I don’t even know what’s in it. The dealers couldn’t take it. We noticed that it burned a hole in the carpet floor. I’ve been dealing for 27 years, I never saw that before.” So described Borgata dealer Nicole Vitola the megaresort’s mega-obeisance to smokers. The Newark Star-Ledger‘s editorial board unloaded last week on Big Gaming and the craven politicians who abet its pro-smoking stance. Casino workers, it fulminated, “were reminded last week that the industry has no interest in their petty concerns, and that they should just suck it up if they want to keep their jobs. A bill that would ban smoking in casinos was shelved — again — because a handful of South Jersey politicians quavered from pressure by treacherous industry fat cats who still believe that smoking is good for business, an obscene and erroneous policy that we hope is vanquished in the next legislative session.” Hear, hear!
Sports betting revenues in Arizona ticked up 16% in October, hitting $55 million on handle of $646 million. Much of those winnings went right back out the door in the form of $22.5 million in promo giveaways. Four operators essentially boxed competitors out of the market, garnering 97% of the gross. It will be interesting to see if ESPN Bet changes that math when the November numbers come out. For now, DraftKings holds a slight edge with $22 million, elbowing aside FanDuel ($22 million), while BetMGM ($9 million) and Caesars Sportsbook ($3 million) essentially complete the picture.
Jottings: Congratulations to the defense of the Las Vegas Raiders, which defeated a dispirited Kansas City Chiefs squad yesterday. The Silver & Black offense was characteristically anemic (six points). Strange as it may seem, the left-for-dead Raiders are now closer to a division title than to a wild-card berth … The city council of Petersburg has green lit a casino referendum for 2025. Maybe the bad taste from last month’s Richmond plebiscite will have dispelled by then. No operators have yet shown interest, but give them time … Ground has been broken on $185 million, new Hollywood Joliet. The modest size of the Penn Entertainment investment may well be dictated by new competition in Chicago and Waukegan … Elite Casino Resorts has made a strange gesture by flinging $500,000 at Iowa State University and University of Iowa‘s football programs. Both have been roiled by gambling-related player scandals … Headwaters Casino Resort in Norfolk continues to be downscaled. The Pamunkey Tribe has ashcanned a planned marina but will incept gambling even while construction proceeds … We’re all frustrated by the glacial progress of casino selection for New York City but embattled Mayor Eric Adams (D) may not have the right answer by bypassing community-review boards. Adams’ plan would leapfrog community advisories and fast-track the process right to the New York Gaming Facility Location Board‘s doorstep … Casino de Montréal plans to add a $150 million hotel next door, Loto-Quebec has announced. The four-story hotel will be built atop the casino’s subterranean parking garage. The plan to infringe upon a public park has not been well received. Fumed Councilman Craig Sauvé, “I cannot believe the city is going to let a hotel be built in the centre of a prestigious park. This is a completely unacceptable commodification of public space.” … Circa Sports has extended its reach to Silverton Casino Lodge, opening a branded sports book there. A temporary sports book opens on New Year’s Day.