California Tribes Unite to Address the Expansion of Prediction Markets in the State

Tribal Leaders Mobilize Against Prediction Market Growth

Leaders from California’s Native American tribes are actively working to address the rapid growth of prediction markets within the state. Recently convening in San Diego, they have been discussing coordinated legal and political strategies to curb, or possibly prevent, the further spread of these markets. This movement follows the introduction of a new prediction market by Fanatics, with major operators like FanDuel and DraftKings expected to enter the market soon.

California Attorney General to Support Tribal Legal Actions

During a national webinar hosted by the Indian Gaming Association, tribal leaders voiced increasing concerns about prediction markets. James Siva, chair of the California Nations Indian Gaming Association, conveyed that tribes view these platforms as a direct threat to their established gaming rights and the state’s regulatory framework. He also announced that California’s Attorney General, Rob Bonta, plans to enhance the state’s participation in ongoing legal battles. This includes supporting Maryland’s legal case against Kalshi and initiating California’s own legal proceedings.

Tribal representatives argue that allowing prediction markets unrestricted operation undermines the exclusive rights guaranteed under the Indian Gaming Regulatory Act. Conversely, market operators contend that prediction contracts involve federal commodities regulations, placing them outside state authority. This disagreement has led to numerous legal disputes nationwide involving companies such as Kalshi and Robinhood.

Within California, three northern tribes have filed complaints earlier this year to prevent prediction market platforms from operating on their lands. Although a federal judge permitted these platforms to continue during litigation, the court acknowledged many tribal concerns. Siva emphasized that this ruling has not dampened their resolve, anticipating that the Attorney General’s office will soon issue a cease order.

Exploring New Strategies Amid Growing Prediction Market Presence

The webinar panel also considered alternative strategies in case courts rule in favor of prediction market providers. Siva revealed that some tribal leaders have quietly discussed the possibility of launching their own prediction market platforms to safeguard their interests if regulatory authorities do not act decisively. Other participants suggested that tribal-operated platforms might increase regulatory scrutiny at the federal level.

Tribal officials are also intensifying efforts to raise awareness. Siva’s tribe, along with the San Manuel Nation, is actively educating lawmakers and tribal communities about the potential impacts of prediction markets. National Indian Gaming Association leaders are cautioning tribes to reconsider partnerships with sports leagues that have adopted these platforms.

With over 100 tribes running gambling enterprises in California, the focus remains on preventing prediction markets from gaining a foothold. However, as industry players expand rapidly, discussions are shifting from questioning the existence of these markets to exploring how tribes can maintain their influence and protections in an evolving gaming landscape.