Gaming Tribes in No Rush to Expand Sports Betting  

The sports betting industry in America has grown at a rapid pace since the repeal of the PASPA. In less than seven years, over half of the states have launched betting. However, tribal entities are not bullish on the industry’s expansion because of various pressures.

American Tribes Are Patient

At the NEXT.io conference, tribal panelists outlined a calm and patient approach to the growth of betting. Representatives of tribes from California, Oklahoma and Wisconsin said that they are not in a rush to expand into the world of sports betting.

Many states where sports betting is legal require partnerships between tribes and casinos or sports franchises. A few others allow tribal operators to offer online sports betting either on their own or via tie-ups with established firms. The latter case usually requires tribes to be regulated in a similar fashion to commercial operators.

Generally, tribes maintain a degree of autonomy when it comes to gambling but must still strike agreements with the leadership of their states. Gaming compacts outline certain rules tribal operators must follow when offering gaming. They must represent a consensus between the governor and the community of state tribes.

Wisconsin Fears Competition from Industry Powerhouses

Wisconsin, for example, already allows retail betting on tribal lands as per a compact between the state’s 11 tribes and the government. However, an online gaming compact is likely to create imbalance because the likes of FanDuel and DraftKings would have a significant edge over their competitors.

Because of that, Wisconsin tribes have so far preferred to invest in the organic growth of their existing operations.

Illegal Betting Is a Major Challenge without Promotions

Tribes across California, Oklahoma and Wisconsin have furthermore been wary of the significant presence of illegal betting. While sports betting advocates have championed legalization as a way to combat the black market, recent data shows that the unregulated sector is still very strong, perhaps twice as much as its regulated counterpart.

A study by Blask and NEXT.io suggested that Florida, which has a single legal operator, is losing 80% of all gaming revenue to unlicensed platforms.

In order to compete with unlicensed sportsbooks, tribal operators would need to invest billions in marketing and promotions – something they have so far been unwilling to do.

In Arkansas where none of the major operators are present, sportsbooks have largely failed to channel a high volume of players to their platforms because of their lack of investment in promotions. Tribes across the US are wary of experiencing this very same thing, which is why they have preferred to approach the industry’s expansion patiently.