california’s gaming tribes and major online sports betting companies, including DraftKings, FanDuel, BetMGM, and Fanatics, have joined forces to combat unregulated gray market sweepstakes sites. These sites, like High 5 Casino and Fliff, are diverting millions of dollars from legal gambling by avoiding regulation and taxation. Their revenue could reach $4 billion by 2025.
The alliance signifies a shift in the relationship between California tribes and commercial operators, who previously clashed in a failed campaign over sports betting expansion in 2022. Now, they are calling for stricter regulation of sweepstakes platforms to prevent revenue loss.
Jeremy Kudon, president of the Sports Betting Alliance, highlighted the billions at stake, urging states and tribes to address the issue. The sites operate under the guise of social platforms, offering games where users can buy virtual coins for real money.
The collaboration marks a new focus for the alliance, which is also monitoring pick’em-style fantasy sports games, considering them a form of thinly veiled sports betting. The tribes await legal clarity on these games’ status while advocating for regulation to prevent their proliferation.
While the online sports betting industry acknowledges past failures, like the 2022 ballot initiatives, there is a commitment to future partnerships with tribes. With California tribes and online sports betting companies united, efforts are underway to combat unregulated gaming and prevent the further expansion of sweepstakes sites. The alliance remains determined to protect the integrity of legal gambling and prevent revenue loss.
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