California Tribes Look to Crack Down on Sweepstakes and DFS Sites

The Golden State is about to become a hostile market for sweepstakes sportsbooks and DFS sites.

The Indian Gaming Association (IGA) is beginning to plan a push against both industries in California. The group is looking to protect its coveted casino industry in the state, where only tribes are allowed to offer gambling. According to IGA leaders, the group is tired of waiting for the government to take action.

“If the states, the AGs, don’t crack down on them, the tribes will,” said Anthony Rocha, Chair of the IGA. “We are not going in this alone. The AGA is now involved. The SBA [Sports Betting Alliance] is now involved. We can force the (National Indian Gaming Commission) to get involved.”

DFS and sweepstakes sites have been able to operate in the majority of US markets, including those where sports betting remains illegal. The platforms require customers to purchase packs of coins to wager with, exploiting a loophole in US gambling laws. Since players aren’t placing real money wagers, these sites are not considered “gambling.”

While Rocha and the IGA have not announced how they plan to reign in these sites, it seems clear that action will be coming soon.

Tribes Join Ongoing Fight Against Sweepstakes Sites

The IGA is not alone in its fight against sweepstakes sportsbooks. The American Gaming Association and several major operators have begun pushing legislatures to crack down on the industry. The groups have been pushing the dangers of the mostly unregulated industry, but legislatures may not agree.

While regulation of sweepstakes-style gaming is likely coming, many consider these sites a safer alternative to using a sportsbook. The continued rise of problem gambling in the industry continues to be a significant concern, and taking away the sweepstakes sites could lead customers to lose far more at traditional sportsbooks.