Tribal influence top of mind for FanDuel, DraftKings officials

In a bid to foster stronger relationships with tribal gaming stakeholders, leading sports betting operators FanDuel and DraftKings made a notable public appearance on March 31 at the Indian Gaming Tradeshow and Convention in San Diego, nearly three years after a controversial campaign to introduce sports betting in California.

FanDuel president Christian Genetski and DraftKings co-founder and CEO Jason Robins engaged in an insightful dialogue regarding their companies’ strategies for collaborating with tribal entities, facilitated by conference chair Victor Rocha of the Indian Gaming Association (IGA). As the conversation unfolded, it became clear that while the discussion centered on creating successful partnerships for long-term sustainability, the backdrop of the dialogue remained charged with the contentious history of mobile sports betting in California.

In 2022, FanDuel and DraftKings led a coalition of commercial bookmakers that invested hundreds of millions in supporting Proposition 27, an initiative aimed at legalizing mobile sports betting in California. Concurrently, tribal organizations advanced their own proposal, Proposition 26. However, it was widely perceived that their primary objective was to block Prop 27, rather than to promote Prop 26. The outcome was stark—Prop 27 received only 17% of the vote, marking a severe setback for commercial operators and leaving ongoing tension in its wake.

On the heels of this defeat, Robins presented a markedly different perspective on the path forward during the recent conference.

“The prospect of online sports betting in California hinges on the respect for tribal sovereignty,” Robins asserted resolutely. “Our understanding of the California landscape must evolve; it is distinct and requires a collaborative approach.”

Genetski echoed this sentiment, noting that both companies are committed to seeking solutions that ensure inclusivity and equitable opportunities for all stakeholders involved. “Our priority is to act as responsible partners, fostering dialogue that leads to mutually beneficial outcomes,” he added.

Navigating the Future of California Sports Betting

In light of California’s pivotal role in the gambling industry, discussions at the IGA were inevitably focused on the state’s future in sports betting. Recent communications from state tribes indicated a reluctance to explore legalization efforts until at least 2026. However, both FanDuel and DraftKings perceive urgent necessity in renewing these discourses.

“From a strategic standpoint, California is key to our long-term growth trajectory,” Robins emphasized. “Forging partnerships with tribal entities is non-negotiable; California’s market potential is unparalleled.”

Genetski reinforced this notion, suggesting that forging a viable partnership in California holds the potential for significant benefits for both tribes and operators: “We believe there exists a solution that fosters prosperity for all parties involved.”

He further iterated the importance of tribal-driven discussions, reaffirming FanDuel’s readiness to contribute valuable insights and information to facilitate constructive dialogue.

Strategic Partnerships and Branding: Cornerstones of Tribal Success

Throughout the panel discussion, both executives emphasized the critical role of finding the right partnerships tailored to the unique needs of individual tribes. In tribal gaming markets, including California, the independence of each tribe necessitates customized approaches to partnership agreements, especially since such alliances often provide essential market access.

“It’s imperative that each stakeholder identifies the right tribal partner,” Genetski advised. “We must avoid scenarios resembling musical chairs, where stakeholders feel pressured to secure partnerships under time constraints.” He acknowledged that maintaining harmonious relationships among all parties is particularly crucial in tribal gaming jurisdictions compared to commercial markets.

For illustrative purposes, Genetski referred to FanDuel’s collaboration with the Mohegan Tribe in Connecticut, noting that the tribe has chosen to leverage the FanDuel brand for sports betting, while opting for a different approach for iGaming.

Similarly, Robins shared insights on DraftKings’ engagement with the Tulalip Tribes in Washington state, where they operate retail sportsbooks at Tulalip Resort Casino and Quil Ceda Creek Casino. “We are eager to expand our footprint in Washington when circumstances permit, but such growth hinges on collective comfort and alignment among all stakeholders,” he stated, highlighting the importance of timing and consensus.

As the gambling industry evolves, the ability of operators and tribal entities to collaborate effectively will prove crucial in unlocking new opportunities and fostering a sustainable gaming landscape in California and beyond.