California Tribes Rally Against Sweepstakes Gaming, DFS Operators

The California Nations Indian Gaming Association (CNIGA) is seeking to protect its tribal sovereignty against controversial sweepstakes gaming companies and daily fantasy sports (DFS) sites operating in the Golden State.

California Nations Indian Gaming Association is demanding the state to shut down sweepstakes gaming, DFS operators

Indian Gaming Association (IGA) conference chairman Victor Rocha said these illegal businesses are circumventing laws in a state where tribal nations have exclusive gambling rights.

“They’re unregulated. They’re untaxed,” Rocha said. “This is gambling on training wheels. It’s a bunch of lawyers who are spitting in our face and looking at gray areas thinking that we’re not going to act.”

Rocha said during Wednesday’s IGA webinar that he arrived to the conclusion during last week’s Global Gaming Expo in Las Vegas. Sweepstakes gaming was among the topics during the convention.

“These guys don’t pay money into the system,” Rocha said. “When we’re talking about cannibalization, this is what we’re talking about. It’s companies like this that take money out of California.”

CNIGA chairman and webinar panelist James Siva said he’s unsure why Golden State officials haven’t contacted them. Regulators generally send a cease-and-desist letter to offshore or illegal operators to force closure.

“It’s baffling how far [sweepstakes and DFS operators] have gotten already without any big pushback from the state,” Siva said. “If they want, I hate to use the word, another fight, we’re always ready.”

Android, Apple, and Google could be contacted about unregulated betting apps in their online app stores

In California, Siva plans to inform Android, Apple, and Google of legal issues pertaining to companies they allow in their online app stores. The panel also added that the tribal gaming commission could issue a violation against these gaming operators.

“Any new entry of gaming into California begins and ends with tribes,” Siva said. “That’s the reality of how gaming operates in California. You may not like it, but you will respect it in the end.”

Sweepstakes gaming allows players to receive free credits, usually coins or tokens, to place sports bets or play in online casinos, which offer slots and table games.

Customers can then purchase more credits and turn those into virtual currency to receive additional free credits that can be redeemed for cash and prizes. Rocha said a few of the companies only require customers to be 18, not the legal gambling age of 21.

Sweepstakes gaming is legal in more than 40 U.S. states. However, states like Connecticut, Delaware, and Michigan have sent cease-and-desist letters to sweepstakes operators. Class-action lawsuits have been filed against sweepstakes companies in Florida and Mississippi as well.