California Tribes Against Daily Fantasy Sports Operators

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00:00 (upbeat music)

00:03 - All right, let's get to California here.

00:05 Like many other states, Mike,

00:06 what we're finding is a lot of these states

00:09 just don't want these pick 'em games going on,

00:12 these daily fantasy pick 'em games.

00:13 I think in the case of California,

00:15 maybe a little bit different here,

00:16 because usually the road that this has gone

00:19 is that sports betting gets legalized in a state,

00:22 they're paying their taxes,

00:24 and then all of a sudden the state looks

00:25 at these DFS pick 'em operators like,

00:27 "Wait a second, they're not paying their taxes,

00:29 "so let's call them illegal and get rid of them."

00:31 Why is California doing this?

00:32 Because they don't have legal sports betting yet.

00:35 - Yeah, I think, Craig, this is just the tribes, again,

00:38 flexing their power, right?

00:39 They didn't want Fandle and Draftkings

00:41 to run sports betting, Proposition 27 got beaten.

00:44 They didn't want these venture capitalists coming in

00:47 and running sports betting operations in the state

00:49 via their proposed sports betting propositions,

00:53 and they didn't even make the ballot.

00:54 Those guys, they called it quits.

00:56 So the tribes really run the show in California,

00:59 they don't want these pick 'em games.

01:00 We've seen it in multiple jurisdictions, right?

01:02 Actually, really even more important

01:03 than the tribes last week is this morning,

01:05 prize picks said in New York, after the NFL,

01:07 after their biggest moneymaker drops,

01:09 and ends for the season,

01:12 we're finally ceasing operations on pick 'em in New York.

01:14 So that is kind of the big story this morning.

01:16 And I think you could see multiple jurisdictions.

01:18 They get those operators, prize picks and underdog,

01:21 that were operating potentially illegally in those states.

01:23 That's what the state regulators determined on pick 'em,

01:25 was it's illegal in our state, please cease and desist.

01:28 They are potentially, they got more than just New York,

01:32 they could stop in all those states

01:33 now that NFL season's over.

01:34 It wouldn't be surprising to see them come out

01:36 with multiple letters today.

01:37 They sent their New York customers, prize picks did,

01:39 a letter that said, by Wednesday at I think 11.59,

01:43 right before midnight, all these prize picks,

01:45 this paid pick 'em games are gonna be gone.

01:47 We'll have some free to play

01:48 where you can win cash prizes going forward.

01:50 So we'll see on that front, and then maybe Florida,

01:53 we'll see what happens there.

01:54 Another big state, Craig, like you said, with California,

01:57 Florida does have legal sports betting

01:58 through Hard Rock Bet.

02:00 We'll see, they were one of the states that said,

02:01 you can't do this here.

02:02 So we'll see if those operators, prize picks and underdog,

02:06 which were making waves, getting customers,

02:08 kind of probably concerning DraftKings and FanDuel,

02:10 but they're saying, well,

02:11 you're not playing by the same rules.

02:12 You're not paying the same taxes maybe as we are.

02:14 And so we'll see, probably,

02:17 is pick 'em gonna survive in the US?

02:18 Seems like they're gonna have to find another way for it to,

02:21 or they're gonna have to pay the same taxes

02:23 and go under the same regulations as the big operators,

02:25 or for them to continue.

02:26 But again, in Florida, excuse me, in California,

02:28 the tribes, they've said, they put out a big opinion

02:32 to the state attorney general,

02:33 has been investigating this issue and said,

02:35 you know, we don't want this either.

02:36 And the tribes have a huge say with their 52 members

02:38 in Sinaiga, including Pechanga, Morongo, San Manuel,

02:42 the big gaming tribes that have shut down

02:44 any sort of sports betting legislation,

02:48 or voter propositions that would get on the ballot

02:51 that the voters would be able to vote on.

02:53 So yeah, this is an issue that's not going away, Craig.

02:55 Sam McQuillan is a terrific beat writer

02:57 for us on this issue.

02:58 He knows way more about this than I do.

03:00 So he will be on this.

03:01 I'm sure you'll be talking about this

03:02 with multiple legal sports reporters this week,

03:05 because it is a huge story,

03:06 and we'll continue to get updates as the day progresses.

03:09 (upbeat music)

03:11 (bells chiming)

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