Apps like Robinhood, Kalshi worry California gaming tribes more than online fantasy sports | California Politics 360
ATTORNEY GENERAL ROB BONTA ISSUED THE LEGAL OPINION, BUT NOT MUCH HAS CHANGED. THE CHAIRMAN OF THE CALIFORNIA NATION’S INDIAN GAMING ASSOCIATION JOINS US NOW. CHAIRMAN JAMES SIVA, THANK YOU SO MUCH FOR BEING WITH US. ABSOLUTELY. THANK YOU FOR HAVING ME. MAJOR DAILY FANTASY SPORTS OPERATORS ARE STILL DOING BUSINESS IN THIS STATE. THEIR APPS ARE UP AND RUNNING DESPITE THE ATTORNEY GENERAL’S OPINION. HOW ARE GAMING TRIBES FEELING ABOUT THAT? YOU KNOW, WE CONTINUE TO BE FRUSTRATED BY THE ENTIRE SITUATION. WE APPLAUDED THE DECISION COMING DOWN FROM AG BONTA, BUT AS WE SEE, THERE HASN’T BEEN ANY ENFORCEMENT OF THAT. YOU KNOW, THAT RULING COMING DOWN FROM HIS OFFICE. AND FRANKLY, WE’RE FRUSTRATED BY IT, BUT WE’RE NOT COMPLETELY UNSURPRISED BY IT. THERE ARE A LOT OF COMPANIES OPERATING NOW AS BEEN PROVEN ILLEGALLY IN THIS SPACE. AND FRANKLY, WE’RE CONCERNED THAT THE AG’S OFFICE JUST DOESN’T HAVE THE RESOURCES FOR THIS TYPE OF ENFORCEMENT ACTION THAT IS REQUIRED. THAT LACK OF RESOURCES. DO YOU THINK THAT’S THE ONLY HOLD UP IN THIS? I DON’T BELIEVE IT’S THE ONLY HOLDUP, BUT I DO THINK IT IS A VERY CRUCIAL PART OF THIS PROCESS THAT IS IS MISSING. I THINK HAVE THE TRIBES CONSIDERED SUING THOSE DAILY FANTASY SPORTS OPERATORS TO POTENTIALLY PUSH THE AG TO TAKE LEGAL ACTION HERE? I THINK THAT SOMETHING UNDER CONSIDERATION, I THINK WE WOULD REALLY PREFER THAT, YOU KNOW, THIS RULE JUST BE ENFORCED AND NOT HAVE THE TRIBES HAVE TO DO THE WORK OF THE STATE, WHICH IS, YOU KNOW, NOT THE FIRST TIME THAT THAT’S HAPPENED. AND I’M SURE IT WILL NOT BE THE LAST, BUT WE WOULD PREFER, YOU KNOW, VERY MUCH FOR THE STATE OF CALIFORNIA TO HANDLE THIS ISSUE COMING FROM THEIR ATTORNEY GENERAL ON THEIR RULING ON THE ON THE GROUNDS OF, YOU KNOW, THEY’RE VIOLATING STATE LAW AS WELL AS TRIBAL EXCLUSIVITY AND SOVEREIGNTY. IS IT JUST DAILY FANTASY THAT THE TRIBES HAVE A PROBLEM WITH, OR IS SEASON LONG FANTASY ALSO AN ISSUE FOR THE TRIBES? WHAT EXACTLY IS IS THE ISSUE FOR YOU ALL? OUR ISSUE IS WHEN THEY ARE GAMES BEING PLAYED ONLINE THAT ARE HOUSE BANKED GAMES. YOU KNOW, WE’VE TALKED ABOUT THE DIFFERENCE IN FANTASY, THE DIFFERENCE BETWEEN PEER TO PEER GAMES, THE DIFFERENCE BETWEEN THESE GAMES THAT ARE BEING, YOU KNOW, THAT PLAY AND FEEL LIKE A HOUSE BANKED GAME WHERE YOU’RE YOU’RE BETTING AGAINST THE OPERATOR, AND THE OPERATOR IS TAKING THE RISK OF THAT WAGER. THAT’S MOSTLY THE ONES, THE TYPES OF GAMES THAT WE’RE FOCUSED ON. I DO BELIEVE THAT OVERALL, THE MORE PEER TO PEER FANTASY SPORTS HAVE A PLACE, AS LONG AS THEY ARE WELL REGULATED AND WELL RUN. OUR MAJOR CONCERN IS IF THERE’S NOTHING THAT SPEAKS TO IT IN THE CALIFORNIA CONSTITUTION, THAT IT WOULD THEREFORE BE ILLEGAL BECAUSE THE ONLY ENTITY THAT IS ABLE TO OFFER ANY FORM OF GAMING IN THE STATE IS TRIBES. AND THE CARDROOMS, WHICH HAVE EXISTED FOR A LONG TIME AS WELL. SO TO CLARIFY THEN, IT’S IT’S DAILY FANTASY. THAT’S THE PROBLEM. I MEAN, DAILY FANTASY IS AN ISSUE. WE ALSO HAVE BEEN DEALING WITH THE SWEEPSTAKES GAMES, WHICH ARE SOMEWHAT RELATED, BUT NOT DIRECTLY, BUT OFTEN KIND OF GET MISCONSTRUED TOGETHER. WE ARE GLAD TO SEE THE SWEEPSTAKES BILL THAT SUPPORTED SIGNED INTO LAW THIS WEEK BY GOVERNOR NEWSOM. THESE ARE PROBABLY THE TWO THAT WE HAVE BEEN WORKING ON LONGER. I WOULD SAY THE BIGGEST ISSUE THAT WE ARE CONCERNED ABOUT ARE ACTUALLY NEITHER OF THOSE ISSUES, BUT RATHER THE EMERGENCE OF PREDICTION MARKETS. AND THESE SPORTS EVENT CONTRACTS BEING OFFERED BY COMPANIES SUCH AS KASHI, CRYPTO.COM, ROBINHOOD. THOSE. OFFERINGS HAVE MUCH, HAVE HAVE MUCH MORE CONCERNS FOR TRIBES AT THE MOMENT. BUT WE CONTINUE TO WORK THE THE DAILY FANTASY ISSUES, THE SWEEPSTAKES ISSUES AS WELL. OKAY, STICKING STICKING WITH FANTASY. I MEAN, IT HAS BECOME SUCH A BIG PART OF SPORTS. DO YOU THINK IT HAS ABSOLUTELY NO PLACE IN CALIFORNIA, OR IS IT SOMETHING THAT YOU THINK PERHAPS THE TRIBES SHOULD BE ABLE TO CONTROL? YEAH, I THINK IT COULD HAVE A PLACE IN CALIFORNIA. THE TRIBES CONCERN HAS ALWAYS BEEN THE THE PROTECTION OF OUR CLIENTS, OF OUR CONSUMERS, BUT ALSO THE REGULATION OF THE GAME. TRIBAL GAMING IS PERHAPS THE MOST WELL REGULATED INDUSTRY, NOT JUST IN THE STATE OF CALIFORNIA, BUT IN THE COUNTRY, REGULATED ON THREE DIFFERENT LEVELS FROM THE TRIBAL LEVEL, THE STATE LEVEL, AND THE FEDERAL LEVEL. AND SO WE COME INTO GAMING WANTING TO DO THINGS WELL, WANTING THINGS TO BE VERY STRAIGHTFORWARD, TRANSPARENT AND CLEAR TO OUR CONSUMERS. OUR CUSTOMERS. SO AS WE LOOK AT FANTASY, IF THERE IS A PLACE TO BE ABLE TO OFFER WELL REGULATED FANTASY SPORTS WITH A CLEAR DELINEATION OF WHAT THE RULES AND OFFERINGS ARE, TRIBES WOULD OBVIOUSLY TAKE A LOOK AT THAT AND GETTING EVEN BROADER THAN I MEAN, SPORTS BETTING GENERALLY. IS THERE A FUTURE WHERE CALIFORNIA COULD HAVE IT LEGALIZED AND THE TRIBES BE SUPPORTIVE OF IT? ABSOLUTELY. I MEAN, AT SINAI, WE HAVE NEVER STOPPED TALKING ABOUT SPORTS BETTING. GOING BACK TO, YOU KNOW, 2022, WHEN WE HAD THE TWO OPPOSING PROPOSITIONS THAT BOTH UNFORTUNATELY OR FORTUNATELY, DEPENDING ON YOUR VIEW, FAILED, WE CONTINUE TO WORK THROUGH THIS NEXT OFFERING OF GAMING INTO THIS MARKET AND WHAT THAT LOOKS LIKE. THERE ARE STILL LOTS OF QUESTIONS TO BE ANSWERED. AND PRIMARILY THE ONE THAT I TRY TO BRING US BACK AROUND TO IS DO CALIFORNIANS WANT ONLINE SPORTS BETTING? RIGHT NOW, WE CONTINUE TO DO MASSIVE AMOUNTS OF POLLING, AND OUR INDICATION IS THAT THEY ARE NOT READY FOR SPORTS BETTING, THAT THEY HAVE MAJOR CONCERNS ABOUT, YOU KNOW, UNDERAGE GAMING. THEY HAVE CONCERNS ABOUT, YOU KNOW, BAD ACTORS. THEY HAVE LOTS OF CONCERNS ABOUT REGULATION, SIMILAR THINGS THAT WE ARE CONCERNED ABOUT AS WELL. BUT WE DO BELIEVE THERE IS A PATH FORWARD FOR SPORTS BETTING. BUT THAT PATH BEGINS AND ENDS WITH TRIBES. TRIBES ARE THE GAMING OPERATORS IN THE STATE, AND WE WILL, YOU KNOW, CONTINUE TO DO WHAT WE CAN TO DEFEND THIS INDUSTRY THAT WE’VE CREATED AND ALSO TO CONTINUE TO, YOU KNOW, BENEFIT THE COMMUNITIES THAT WE’RE A PART OF, A BIG PART OF TRIBAL GAMING IS OUR CHARITABLE GIVING, AND WE CONTINUE TO UPLIFT THOSE COMMUNITIES AROUND US. AND WE KNOW WHAT GOOD WE’VE DONE HERE IN CALIFORNIA, BUT WE ARE CONCERNED ABOUT OUTSIDE COMPANIES, OUT OF STATE COMPANIES COMING IN AND HAVING ACCESS TO THE MARKET WITH NO TIES TO THE COMMUNITY, WITH NO, YOU KNOW, NOT PROVIDING ANY NEW JOBS HERE IN CALIFORNIA, NOT PROVIDING ANY NEW REVENUE TO CALIFORNIA. SO AS WE LOOK AT SPORTS BETTING, WHEN IT COMES, IT WILL COME THROUGH THE TRIBES. CHAIRMAN, THANK YOU SO MUCH FOR YOUR TIME AND JOINING FOR CA
Apps like Robinhood, Kalshi worry California gaming tribes more than online fantasy sports | California Politics 360
Updated: 8:28 AM PDT Oct 19, 2025
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While the feud between California’s gaming tribes and online fantasy sports operators has received a lot of attention over the past few months, the leader of the association that represents the gaming tribes signaled the group is far more concerned about another set of online platforms. In an interview with California Politics 360, the chairman of the California Nations Indian Gaming Association, James Siva, said the biggest issue facing the gaming tribes is the rapidly growing popularity of prediction market apps.”The emergence of prediction markets and these sports event contracts being offered by companies such as Kalshi, Crypto.com, Robinhood. Those offerings have much, have much more concerns for tribes, at the moment,” Siva said when responding to a question about his concern with daily fantasy sports apps. Three tribes sued Robinhood and Kalshi in federal court in July, accusing the companies of unauthorized sports betting on tribal lands through their sports event contracts. The tribes have specifically asked the courts to block the companies from offering the contracts and services in California and have requested financial damages. Kalshi, which launched its first sports contract in January, reportedly raked in $130 million during this year’s NBA Finals and $500 million during March Madness. Robinhood gives its customers the ability to trade based on their predictions on the outcome of future events, including sporting events, through its partnership with Kalshi. In August, the companies launched NFL and college football prediction markets.| See the full episode below | California Politics Full Episode | The fight over fantasy sports and future of sports betting”Unlike sports betting, where the firm sets a line, event contracts leverage the power and rigor of financial market structure and are offered in a marketplace where buyers and sellers interact to set the price,” Robinhood stated in the announcement. “Customers can access the contracts in real time and manage risk by adjusting–or exiting–their positions up to and throughout a game before a contract expires.” Federal court filings in September show the companies said they would suffer “substantial and irreparable harm” if the court were to grant the request from tribes, court documents show. The companies also argued the conduct isn’t happening on tribal lands just because it may be accessible to tribal members there over the internet. A hearing on the federal lawsuit is scheduled in San Francisco on Oct. 23.Watch California Politics 360 Sundays at 8:30 a.m. on KCRA 3.PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=
While the feud between California’s gaming tribes and online fantasy sports operators has received a lot of attention over the past few months, the leader of the association that represents the gaming tribes signaled the group is far more concerned about another set of online platforms.
In an interview with California Politics 360, the chairman of the California Nations Indian Gaming Association, James Siva, said the biggest issue facing the gaming tribes is the rapidly growing popularity of prediction market apps.
“The emergence of prediction markets and these sports event contracts being offered by companies such as Kalshi, Crypto.com, Robinhood. Those offerings have much, have much more concerns for tribes, at the moment,” Siva said when responding to a question about his concern with daily fantasy sports apps.
Three tribes sued Robinhood and Kalshi in federal court in July, accusing the companies of unauthorized sports betting on tribal lands through their sports event contracts. The tribes have specifically asked the courts to block the companies from offering the contracts and services in California and have requested financial damages.
Kalshi, which launched its first sports contract in January, reportedly raked in $130 million during this year’s NBA Finals and $500 million during March Madness.
Robinhood gives its customers the ability to trade based on their predictions on the outcome of future events, including sporting events, through its partnership with Kalshi. In August, the companies launched NFL and college football prediction markets.
| See the full episode below | California Politics Full Episode | The fight over fantasy sports and future of sports betting
“Unlike sports betting, where the firm sets a line, event contracts leverage the power and rigor of financial market structure and are offered in a marketplace where buyers and sellers interact to set the price,” Robinhood stated in the announcement. “Customers can access the contracts in real time and manage risk by adjusting–or exiting–their positions up to and throughout a game before a contract expires.”
Federal court filings in September show the companies said they would suffer “substantial and irreparable harm” if the court were to grant the request from tribes, court documents show. The companies also argued the conduct isn’t happening on tribal lands just because it may be accessible to tribal members there over the internet.
A hearing on the federal lawsuit is scheduled in San Francisco on Oct. 23.
Watch California Politics 360 Sundays at 8:30 a.m. on KCRA 3.
