D.O.A.
OSB operators’ latest California plan might already be a busted flush
Operators hatch Cali tribal plan – but key figures are cautious.
Illinois the latest to send a cease-and-desist letter to prediction operators.
In +More: Star Sydney reprieve, GOD55 in the Brum FC details.
New Aristocrat complaint prompts Light & Wonder to pull more slots.
UK parliamentary committee gets to grips with gambling harms.
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California nightmares
Get your retaliation in first: Key figures in the debate within Californian tribal circles and sports betting in the state suggested the plan hatched just this week by the Sports Betting Alliance is far from being a done deal.
Posting on X, Victor Rocha from the Pechanga Band of Luiseño Indians said that having spoken to a number of Californian tribal leaders, the SBA plan is already “DOA.”
Meanwhile, Jeff Grubbe, former chair of the Agua Caliente Band of Cahuilla Indians, said in a statement to LegalSportsReport that an agreement “remains a long way off.”
Back to the drawing board: The SBA plan was discussed at a closed-door session during this week’s Indian Gaming Tradeshow in San Diego of the SBA’s Tribal Advisory Council, a coming together of four sportsbooks and six representatives of the Californian tribes.
The plan was reported to be the outcome of months of previous discussions.
Stick it on a sandwich board: According to a presentation slide, the plan would involve a collective market structure and a tribal entity owned by the tribes licensing four or more operators.
These operators would then pay the tribal entity an unspecified revenue share to be divided among all 109 federally recognized tribes.
Each tribe would receive a minimum guarantee plus the rev share.
A percentage of revenue would also go to the state based on where a bet was placed rather than a central fund.
Future imperfect: In his statement, Grubbe described the meeting this week as a “valuable opportunity” but warned that “a final agreement remains a long way off.”
“To the best of my knowledge, no agreements have been reached between any tribes and commercial operators,” he added.
“This process will be tribally driven and grounded in the protection of existing brick-and-mortar operations.”
Unpredictable: The latest effort from the SBA to find a solution to open up California to OSB while managing to keep the tribes on board comes at the same time that the threat from sports-based prediction markets is also raising tribal hackles.
Again on X, Rocha posted late last week that he believed there would be a “united front in tribal gaming against event contracts.”
Promises, promises: Seemingly acknowledging the sensitivities around prediction markets during another panel discussion at the show, Jeremy Elbaum, CCO at DraftKings, promised that any DraftKings Predict offering would not be made available in California.
Asked specifically about a prediction offering in the Golden State, Elbaum said sports betting was the “only thing that we are out here to do.”
Prediction markets “might fit somewhere else, but not here,” he added.
The latest efforts from the operators to get a deal in California follow their disastrous ballot attempt in 2022, which was opposed vehemently by the tribes and lost heavily in the polls.
Patience needed: Rocha told C+M this time last year that retail sports betting might be back on the ballot in California in 2026, with mobile to follow in 2028 if all goes to plan.
“The tribes that matter, the politically active ones who have put money into this, are united on that approach,” Rocha said at the time.
California dreaming: There is no doubting the size of the prize, with an open Californian OSB market likely the biggest potential single state yet to make a move.
Analysts at Jefferies said yesterday that if the same metrics as New York were applied to California, it would be worth at least $3.7bn in annual GGR.
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Make it stop
Ceaseless: Illinois has joined the prediction markets cease-and-desist bandwagon, issuing letters to Kalshi, Robinhood and Crypto.com, alleging like other states before it that the trio are offering unregulated sports wagering under the guise of events-based markets.
No fools: The Illinois Gaming Board issued letters on Tuesday, April 1, saying the regulator “has reason to believe” that each is in violation of the state’s Sports Wagering Act.
Meanwhile, Connecticut’s Department of Consumer Protection is reported to be investigating Kalshi.
Join the queue: Illinois joins Ohio, which earlier this week issued another C&D letter, New Jersey and Nevada in attempting to stopper prediction markets within their states.
The Ohio Casino Control Commission (OCCC) ruled that event contracts on sporting outcomes meet the legal definition of sports betting, requiring licensure under state law.
OCCC executive director Matthew Schuler said the contracts are “no different than placing a bet through a traditional sportsbook.”
Unlike licensed sportsbooks, Schuler argued, the platforms lack Ohio’s mandatory consumer protections, including age restrictions, allowing access to individuals under 21.
Offering such products without approval constitutes bookmaking and a “flagrant disregard” for state gambling laws, the regulator said.
All three companies must confirm compliance in writing to the OCCC by April 14 or face further enforcement action.
Future’s so bright, I gotta wear shades: Kalshi CEO Tarek Mansour has been the most aggressive in pushing back at what he sees as an overreach by the states. Mansour believes they are undermining the authority of the federal Commodity Futures Trading Commission, which regulates derivatives and futures products.
“Prediction markets are a critical innovation… and like all innovations, they are initially misunderstood,” Mansour said on LinkedIn.
He pledged to defend Kalshi’s model in court, framing the OCCC’s move as a challenge to federal oversight of event-based financial contracts.
Regulators in Michigan, New Jersey and Nevada have taken similar action against prediction markets, as they increase scrutiny of platforms offering alternatives to traditional sports betting.
+More
Last roll of the dice: The Star Sydney has a stay of execution until at least September 30. The casino will remain under government supervision as regulators review ongoing remediation and financial stability efforts. The NSW Independent Casino Commission extended monitor Nicholas Weeks’ oversight, first imposed in October 2022 after damning findings on money laundering and governance failures. The extension reflects progress in compliance, but concerns remain over The Star’s financial health and the pace of reform.
Bulgaria has updated the minimum self-exclusion period on its problem gambling register to one year, up significantly on the previous window of 30 days.
Ireland’s Gambling Regulatory Authority (GRAI) wants operators and suppliers to register their interest ahead of the anticipated launch of the licensing portal later this year. Hopefuls are encouraged to complete a survey and inform the regulator of the type of license they wish to receive.
Thailand: The draft bill for casino-led developments in Thailand is heading to parliament after receiving approval from the cabinet. Space allocated for casinos in the entertainment complexes will be capped at 10% of each development. The first four destinations for potential projects are expected to be Bangkok, Chon Buri, Chiang Mai and Phuket. The affordability checks and entry fee elements of the legislation have remained in place.
Alberta: The province’s government has advanced discussions around online gaming legalization after filing the iGaming Alberta Act. Bill 48 will establish an open market for both OSB and iCasino, replacing the current monopoly of state-owned Play Alberta.
Brazil: A senator on the parliamentary committee assessing the impact of the newly regulated online betting and gaming market has called for more regulations to make the offerings less accessible to those potentially at risk of suffering gambling harms.
God is in the details: A mysterious Asian bookie – self-proclaimed as “one of the biggest and most trusted brands in the online gaming industry” despite no one ever having heard of it until this week – is at the center of a storm engulfing English Football League club Birmingham City. The bookie in question, GOD55, claimed to be licensed by the Malta Gaming Authority – but the MGA has confirmed it has never heard of the business.
MLRO / Compliance Officer – Malta
Compliance Analyst – Malta
Head of Compliance – Remote / UK
State by state
Mississippi goddam: The Magnolia State’s attempt to legalize online sports betting and ban sweepstakes collapsed in conference committee after lawmakers couldn’t reconcile competing House and Senate versions.
Three wishes: In Oklahoma, however, lawmakers have advanced three competing sports-betting bills. One grants tribal exclusivity, another requires a voter referendum, while the third is a Senate-backed version that includes licenses for tribes and the NBA’s Oklahoma City Thunder.
Sweet Home Expansion? Alabama Sen. Greg Albritton is expected to introduce a gaming expansion bill this week to legalize land-based casinos and online sports betting. Albritton’s efforts fell short last year, but the senator believes this time he has the required support to get the legislation rubber stamped and in front of voters in September.
Hold your fire
Dragon attack: Light & Wonder is pulling 150 Jewel of the Dragon slots amid an ongoing copyright infringement battle with Aristocrat, which claims trade secrets from its Dragon Link series were poached.
L&W held a call with analysts after the close to explain its decision to yank a second slot since the case began, with bosses noting the game accounts for mid-single-digit millions in annual revenue.
A court injunction by Aristocrat and an internal audit revealed early math models of Jewel of the Dragon bore similarities to those under legal scrutiny. Though later versions used different models, L&W is withdrawing the games “to minimize confusion.”
Double or nothing: Aristocrat’s amended complaint alleges broader misuse across L&W titles, including the popular Double Dragon game.
L&W has until April 11 to respond to Aristocrat’s amended complaint. Nevada District Court previously ruled that the initial complaint can largely move forward, throwing out most of Light & Wonder’s motion to dismiss.
See Earnings+More’s Earnings Extra edition later today.
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Gambling harms meeting
Taken to task: The UK Parliament health and social care select committee convened yesterday for a one-off hearing on gambling-related harms and talked with the purpose of examining the broader gambling landscape.
The three-hour marathon meeting saw two panels of three witnesses called to face questions.
No escape: The panel lambasted industry marketing practices, citing data suggesting 34% of those highest at risk of gambling-related harm received daily incentives to gamble, with only 4% of those in lower-risk categories receiving the same.
There was a suggestion that 80% of people in the United Kingdom are exposed to gambling advertising on a weekly basis.
One panelist commented: “When we work with people with lived experience [of gambling-related harm], one of the things that they tell us, and we hear a lot, is it feels like there is no escape.”
Industry marketing was repeatedly described as pervasive and intrusive.
Population, not the individual: The panel suggested the current approach is to treat the individual, those already at the “top of that pyramid” who are already experiencing significant harm.
If the UK is to take a population-based approach, better research is needed into what the public as a whole needs for harm prevention.
The all-powerful: Multiple areas in which commercial industry stakeholders have disproportionate power were put forward. The panel argued there were “systemic failures” in regulation, and relying on an industry to implement their own voluntary codes for advertising and marketing was intrinsically flawed.
‘When the fun stops’ messaging was suggested to have “very limited efficacy” and “in some cases might be counterproductive.”
The panel urged public health experts to be added to licensing committees to prevent the “bombardment” of deprived areas with brick-and-mortar gambling establishments that “prey on the most vulnerable.”
The levy: a glimmer of hope: The recently introduced statutory levy was suggested to be an opportunity to systematically change the monitoring and surveillance system in the gambling industry and make sure there is independence in the prevention system.
The panel claimed the current approach was largely counterintuitive. The industry is reliant on implementing solutions for harm reduction when the vast majority of its profits are generated from individuals experiencing harm.
Backed into a corner: Tim Miller, executive director the UK Gambling Commission, claimed it was only part way through delivering a programme of reform in a landscape that has rapidly changed over the last few years and will continue to do so.
He said that self-excluded gamblers were being targeted by illegal websites based overseas, so the Commission has had to adjust its approach to work more closely with big tech companies such as Google.
Events
Apr 24: The future for the UK gambling sector, London
May 8-9: Leaders in Compliance Conference, Frankfurt
May 14: Player Protection Symposium, SBC Americas, Fort Lauderdale
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