California Tribes Rally as Prediction Markets Spread in the State

California’s tribal leaders are stepping up their efforts to tackle the quick growth of prediction markets, meeting this week in San Diego to plan their legal and political moves to slow down, or maybe even halt, the prediction markets’ growth. These talks happen just after Fanatics launched its prediction market in the state, with FanDuel and DraftKings likely to join soon.

California AG Poised to Join Tribal Effort Against Prediction Market Operators

During a national webinar organized by the Indian Gaming Association, leaders expressed growing concern. James Siva, who chairs the California Nations Indian Gaming Association, said tribes see these platforms as a threat to their long-standing gaming rights and a challenge to the state’s rules. He informed listeners that Attorney General Rob Bonta plans to step up California’s involvement in the broader legal fight. This includes joining a supporting brief in Maryland’s lawsuit against Kalshi and starting California’s own legal action.

Native American tribal leaders claim that giving prediction markets free rein weakens the exclusive rights promised to them by the Indian Gaming Regulatory Act. On the flip side, market operators say that contracts on future events should fall under federal commodities rules, putting them beyond state control. This disagreement has sparked a flood of legal battles involving Kalshi, Robinhood, and other companies throughout the nation.

In California, three tribes from the north filed a complaint earlier this year to stop market-style platforms from entering their lands. Even though a federal judge allowed operations to continue during the legal process, tribal leaders pointed out that the court recognized many of their worries. Siva stressed that the ruling has not reduced tribes’ determination and that they anticipate Bonta’s office will issue a stop order soon.

California Tribes Consider New Tactics Amid Rising Prediction Platforms

Panelists also talked about making a backup plan in case courts end up siding with prediction market operators. Siva mentioned that some tribal leaders have quietly thought about whether they might need to enter this area themselves to protect their money and power if regulators do not step in. Other panel members suggested that if tribes started their own platforms, the extra attention could force federal regulators to take stronger action.

Tribal officials also highlighted a wider effort to educate people. Siva’s own tribe, along with the San Manuel Nation, is running campaigns to inform lawmakers and tribal communities about how prediction markets could affect them. Across the country, IGA leaders are asking tribes to think twice about partnering with sports leagues that have embraced prediction platforms.

With over 100 tribes running gambling operations in the state, leaders say they are focusing on stopping betting markets before they take root. However, as business operators move fast, the argument is changing from whether betting markets should exist to how tribes can protect their standing in a shifting scene.