California Tribes Sue to Halt Sports Prediction Markets

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00:00piece of breaking news that we learned this morning apparently the beat rolls on in california

00:06they've gone from two years ago looking to legalize sports betting going through the tribes

00:10let's put it to a vote that fails no sweepstakes no daily fantasy and now no prediction markets as

00:19well my gosh things are completely going the other way in the state of california

00:24definitely trending that way if you want to do sports betting or what these tribes and

00:29other groups have now called a sports betting adjacent product or a sports betting workaround

00:33if you want to get harsher about it three tribes this morning the blue lake ranch area chicken ranch

00:39ranch area and picayune ranch area filed a federal lawsuit in california's northern district court

00:45which would seek to block calci and robin hood from offering these sports prediction markets these of

00:51course are these event contract markets that companies like calci have offered for years

00:57mostly on the election sometimes on the weather sometimes in the state of the economy but ever

01:02since january they've started making sports versions of them where you can stake money on

01:08the outcome of an event to happen they started with the super bowl and now they have markets on every

01:12mlb game every nba game and there's a lot of speculation that maybe soon they'll have parlays as

01:18well that put all these sports events together those have been offered in all 50 states so this is only the

01:24latest group you're seeing pushback against them it's the california tribes which like you mentioned

01:29craig have a lot of power in california they were able to stop sports betting from getting legalized on

01:34the ballot in 2022 and that was the most expensive ballot campaign in the history of the us so that's

01:41no small feat there they've also been instrumental as well with getting the attorney general to finally

01:46issue his legal opinion on daily fantasy sports primarily games which again these tribes see as

01:53just sports betting workarounds their argument here is that by offering these sports event contract

01:59markets these companies are violating protections that the tribes have they have exclusive sovereignty

02:05over most forms of gaming in the state which is one of the reasons sports betting hasn't been

02:10legalized they haven't been able to cut a deal with the sports books that kind of gives them enough money

02:14they kind of hold all the cards there they also argue that this violates the state gaming compact

02:19with california and the tribes as well as the state constitution so there's a lot of federal

02:23arguments at stake here as well as state this comes after a bunch of states we've talked about before

02:29nevada new jersey maryland they all filed similar lawsuits against calci and robin hood basically seeking

02:36to do the same thing get a preliminary injunction to stop them from doing these operations in the states

02:41now in those cases the judges have actually all ruled in calci's favor initially allowing the

02:47lawsuit to proceed allowing cal calci to keep taking to keep offering kind of these markets in those

02:52states while the lawsuit plays out so it'll be interesting to see if you know it's different now

02:57that the tribes are involved versus other states where the regulators have come after them and notably

03:03as well california is also a state without legal sports betting all the other states we've seen so far

03:08take action against these prediction markets uh it's been through their legally regulated agencies

03:13which only exist because they have legal sports betting and then of course you have the whole

03:17backdrop of the cftc which has pretty much done nothing about these prediction markets uh under the trump

03:23administration uh previously it had been very kind of um you know against the calci's and poly

03:29markets of the world uh under the previous administration uh a lot of people have asked the cftc to

03:34weigh in and do something and work with the states and the cftc is kind of just waited on the sidelines

03:39so uh it's yet another development in this uh prediction markets process but in the meantime tons

03:46of money is getting traded on these platforms and they continue to operate in all 50 states so

03:50but the tribes being involved here is definitely kind of a big move in the direction of getting this

03:55this stuff banned we'll just have to see what the court said

04:05you

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