In California, Tribal operators hold exclusive rights over different gaming activities. In order for the state to legalize sports betting, the Tribes need to be consulted and any proposal needs to be greenlighted by them as well.

Back in October, Kasey Thompson and Reeve Collins introduced a proposal that sought to open the largest sports betting market in the United States, the one in California. Introduced on October 27, 2023, the Sports Wagering Regulation and Tribal Gaming Protection Act’s main purpose is “to regulate online and in-person sports wagering in California,” while at the same time, generating funding for Tribal communities and governmental services.

A few weeks after the Sports Wagering Regulation and Tribal Gaming Protection Act was proposed, it is now facing formal opposition from the California Nations Indian Gaming Association (CNIGA). On Thursday this week, the Association revealed that 52 of its members voted against two sports betting proposals that were recently filed with the California Sectary of State’s office.

CNIGA explained that the voting comes after a meeting between its Executive Committee and supporters of the proposals. Known as the association of tribal groups in California, CNIGA was founded back in 1988. It currently represents the Tribal sector on industry matters and advocates for gaming rights on Indian lands.

“Today the 52 members of the California Nations Indian Gaming Association voted to oppose two sports wagering initiatives that were recently filed with the California Secretary of State’s office. The vote follows a meeting between the initiative proponents and the CNIGA Executive Committee,“

reads a statement released by CNIGA

The Association’s Opposition Is Irrevocable

James Siva, CNIGA’s chairman, criticized the two sports wagering proposals saying: “The entire effort surrounding these initiatives was handled abhorrently by the initiative sponsors.” He revealed that it was difficult for the Association’s members not to be offended when hearing how the supporters of the initiatives discussed their proposals.

“This is another example of outside influences trying to divide and conquer Indian tribes. We will not let history repeat itself.“

James Siva chairman of CNIGA

Siva highlighted that the Tribes in California have been involved in the gaming sector for more than 40 years. According to him, their involvement isn’t by coincidence or mistake but rather highlights the dedication of the Tribes to ensuring the well-being of their communities and members. “Tribal Leaders are the experts, and we will decide what is best for our people,” he added.

“Our opposition could not be more clear and is irrevocable,“

added Siva

CNIGA’s chairman urged the supporters of the proposals to drop the initiatives, reminding them of their promise to do so if they face opposition from the tribes. Finally, Siva reiterated that the Tribes officially oppose the sports wagering initiatives.

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The Florida sports betting case has taken another turn as the Department of the Interior (DOI) objects to West Flagler and Associates’ request for a stay in the DC Circuit Court of Appeals mandate. The court’s decision, which favored the DOI and the Seminole Tribe of Florida, did little to reduce tensions as both sides remained firm in their resolve. 

The Legal Battle Carries On

The heart of the dispute revolves around Florida’s agreement with the Seminole Tribe to offer Hard Rock Bet to Florida residents, specifically off-state lands. While West Flagler has the right to question the nature of this agreement, the DOI asserts that it need not be involved in this matter. Instead, it maintains that this issue is for the state of Florida and state courts to decide.

West Flagler has until 2 October to respond to the DOI’s filings. Subsequently, the court will need to issue a ruling on the stay. If the request gets denied, it could eventually pave the way for the launch of Hard Rock Bet in Florida. The DOI was adamant that the current court ruling was valid, as it clarified a narrow section in one particular Compact under IGRA.

A stay is not warranted because any such petition could present no substantial question for Supreme Court review.

DOI statement

West Flagler has also expressed its intent to petition for a writ of certiorari. The group has until 11 December to file its petition. Following this action, the DOI and the Seminole Tribe will have 30 days to respond before the Supreme Court of the United States (SCOTUS) decides whether to hear the case.

The Future of Florida Sports Betting Hangs in the Balance

The Court of Appeals’ decision will likely decide the future of sports betting in Florida. The Seminole Tribe has reaffirmed that it plans to resume the wagering offering via the Hard Rock brand but cannot proceed without clearing the current legal hurdle. While the case has stretched for months, West Flagler is running out of avenues to contest the court decision, meaning the saga may be nearing its conclusion.

The Seminole Tribe currently holds a 30-year agreement with the state of Florida, granting it a monopoly on all sports betting. The agreement also required the tribe to pay the state a minimum of $2.5 billion over the first five years of the deal. However, the current legal proceedings have put all plans on hold. 

The outcome of this legal battle will have significant implications for the future of sports betting in Florida and provide further clarity on the application of the Indian Gaming Regulatory Act. While the current situation favors the Seminole Tribe, both sides await the court’s decision on the stay request, as this case’s ultimate resolution remains uncertain.

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Malta-based online gambling company, N1, has expressed its disagreement with the decision of the KSA to fine them for violating the Dutch Betting and Gaming Act. 

N1 Objects to KSA’s Fine Calculation and Requests Delay in Publication

In a statement, N1 denied violating the Dutch Betting and Gaming Act and argued that the KSA’s calculation for the fine was incorrect and baseless, leading to a disproportionately high amount. N1 claimed that the fine contradicts the legal basis for levying and calculating a fine under Dutch law.

N1 has objected to the KSA’s decision and requested that the publication of the fine be delayed until the proceedings are concluded. However, the KSA denied the request and went ahead to publish the decision.

N1 strongly believes that the KSA’s actions have put pressure on their current standing in both administrative and judicial proceedings. Nonetheless, N1 is confident that the court will consider their arguments in a fair and transparent manner to reach a decision that is based on the legal standing of the matter.

N1 intends to appeal the fine and present evidence to dispute its legitimacy and proportionality, especially in comparison to other sanctions imposed by the KSA on other operators in the past.

Furthermore, N1 stated that they have fulfilled all their regulatory obligations related to Anti-Money Laundering, GDPR, responsible gaming, and tax. The company remains committed to complying with all regulatory obligations, both under its license from the Maltese Gambling Authority and internationally.

Four More Companies Besides N1 Fined $27.7M by Dutch Gambling Regulator

Last week, KSA revealed that it had imposed €26 million ($27.7 million) worth of fines against five companies, including N1, that had offered games of chance to Dutch players without a license. 

The fines, which had been announced in December, were challenged by the operators in court, but the judge rejected their efforts, resulting in the public announcement of the penalties. The KSA explained that the fines were implemented based on its newly adopted policy, which enforces penalties based on the turnover of operators in the Netherlands.

The five operators that faced penalties were N1 Interactive Limited, Videoslots Limited, Betpoint Group Limited, Probe Investments Limited, and Fairload Limited. The largest fine, worth €12.6 million ($13.4 million), was imposed on N1 Interactive Limited, while Videoslots Limited was fined €9.9 million ($10.5 million). Betpoint Group Limited faced a fine of €1.8 million ($1.9 million), Probe Investments Limited was fined €1.13 million ($1.2 million), and Fairload Limited was fined €900,000 ($957,000).

KSA’s chairman, René Jansen, defended the fines, stating that they were proportionate and aimed at the operators’ wallets. The KSA explained that N1 Interactive Limited faced a larger fine due to repeated violations, while Videoslots Limited was fined for incorrectly displaying the KSA’s wordmark on its website.

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