Businessman Kasey Thompson is the point person of a group facing long odds trying to get a sports betting initiative on California’s ballot in 2024. However, four small tribes are bucking the bigger tribes and have expressed support for the revenue-sharing plan.
Furious Pushback
Sports betting has been a battle in the Golden State since the opportunity to legalize it began. It is the holy grail for online sportsbooks due to its huge population and they have spent hundreds of millions in advertising to convince the voters they should welcome it —and all the tax revenues that will flow from it— in their state.
However, the tribal nations currently have a monopoly on gaming and want sports betting under their terms and not those of outside concerns. They too have spent hundreds of millions to oppose it and they have come out on the winning end, convincing the electorate the sports betting proposals were not in the best interests of the voters.
Therefore, this latest push by Kasey Thompson and his Eagle 1 Acquisition Company was unexpected. It wasn’t announced until October and the deadlines to submit the proper documentation and collect approximately 600,000 signatures requiring about $25 million to do so, were closing fast.
Unanimous Rejection
Thompson amended his proposal to eliminate any and all tribal objections while including their wishes, but it still did not pass muster with the tribal leaders. The California Nations Indian Gaming Association (CNIGA) said all 52 members of their group voted down the proposal, which should have been enough evidence for Thompson that his idea was a non-starter, especially after saying on numerous occasions he would not go forth without majority support of the tribal nations.
Furthermore, the letters sent to Thompson and the state’s Attorney General’s office left little doubt as to where the tribal leaders stood.
“The disingenuous nature of these initiatives should be a red flag to every tribal government as well as every voter in California,” said CNIGA chairman James Siva. “The proponent of the measures are attempting to divide and conquer tribes by pushing an initiative that attempts to legitimize illicit off-shore operators and putting our governments at risk.”
The letter also reads: “An aggressive campaign will be waged against these reckless initiatives — like in 2022 which resulted in an 82% NO vote — that harm potential legitimate efforts to authorize sports wagering responsibly in California.”
A Ray of Hope
Most people would have thrown their hands up after those terse responses and overwhelming evidence that the odds were stacked against them. But Thompson is nothing if not determined and he points to a recent statement by outgoing Cahuilla chairman Daniel Salgado in support of his proposal.
“I support the initiative in its amended form and I’m going to look to get other tribes in California, and as many Californians as possible, to support it,” Salgado said. “Californians need to know that two-thirds of California tribes are struggling. We’re not the Indians they see on billboards. We’re out in the trees, we’re out in the hills, we’re out in the desert, we’re out in the rural areas that aren’t commonly visited and we’re out there trying to survive. This initiative finally gives us a meaningful revenue stream to not only survive but thrive.”
Thompson also points to the Cahuilla Band of Indians, Karuk Tribe, Blue Lake Rancheria, and Chicken Ranch Rancheria, which have stated the initiatives would bring much-needed revenue to the rural tribes.
Thompson’s proposal does enhance the revenue-sharing tribes’ annual take of $1 million to as much as $15 million when including the 25% tax on sports betting profits that would be earmarked for the Revenue Sharing Trust Fund (RSTF.)
“I think that this has taken a lot of time and preparation, and they wouldn’t be coming out now unless they thought that they would have the full support of the 72,” Thompson said. “I think that they’ll get them because a $15 million to $1 million difference of revenue is staggering.”
Bookmakers Review will continue to monitor this story and update our readers as events unfold.
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