Compliance Updates
At $300 Million, This is Expected to be California’s Most Expensive Ballot Fight Ever. And it Just Got More Intense
In a sign of the bruising, expensive fight to come, two Native American tribes are coming out in support of a newly qualified ballot measure to allow online sports gambling — instead of a separate gaming measure backed by dozens of other tribes.
On Wednesday, two tribes — the Middletown Rancheria of Pomo Indians and the Big Valley Rancheria Band of Pomo Indians — will announce their support for the online gaming measure that proponents call the Californians for Solutions to Homelessness and Mental Health Support Act.
Backed by commercial operators including FanDuel, DraftKings, and BetMGM, the measure would legalize online sports betting in California, with 85% of the revenue going toward housing for the homeless and mental health services. The rest would go to the Indian tribes that will be partnering with major gaming operators in running the operation.
On Tuesday, Secretary of State Shirley Weber announced that the measure had gathered enough valid petition signatures to be eligible for the ballot in November. A report from the state’s nonpartisan Legislative Analyst’s Office said new tax revenue from the proposal “could reach the mid-hundreds of millions of dollars annually.”
“We’re supporting the Solutions Act because it gives us an opportunity to protect our sovereignty and also create opportunities for economic wealth for the next seven generations for our tribe,” Jose “Moke” Simon, chair of the Middletown Rancheria of Pomo Indians, said.
“It also helps the state of California deal with some of the biggest problems that it has here, that is affecting every community, which is homelessness and mental health issues,” said Simon, who stars in a new online ad for the proposal.
It is a sign that what’s expected to be California’s most expensive ballot measure battle ever is heating up. Analysts have predicted that more than $300 million could be spent between the warring parties. That’s far more than the $224 million spent by both sides over 2020’s Proposition 22, which asked voters to decide whether app-based transportation and delivery drivers should be classified as independent contractors.
Both sides believe that the jackpot that awaits is worth it: California’s estimated sports gaming market is estimated to be around $3 billion. At least.
A proposal supporters call the Tribal Sports Wagering Act, which is backed by dozens of Native American tribes, already qualified to go before voters in November. It would allow only in-person sports betting to occur only at tribal casinos and qualified horse racetracks. Proponents say they have secured the endorsement of roughly one-third of California’s 109 Native tribes.
Kathy Fairbanks, a spokesperson for the Tribal Act, said that measure represents a more responsible approach.
“It’s allows sports betting to patrons over 21 and older. You have to be there in person, show your ID, people can look you in the eye and make sure that you match the ID in front of you,” Fairbanks said.
The decision for voters, said industry analyst Brandt Iden, is “retail-only sports betting versus mobile.”
“That’s what this is going to come down to do for consumers,” said Iden, a former Republican Michigan state representative who is now head of government affairs at Sportradar, a sports technology company that provides data and content to the betting industry. “Do I need to walk into a sports book to place a wager, or can I do it from a mobile device anywhere in the state?”
Proponents of the online-only measure touted Wednesday’s endorsement from two smaller tribes as a sign that all of California’s Native tribes aren’t fully on board with the in-person-only measure.
Simon, from the Middletown Rancheria of Pomo Indians, which operates the Twin Pine Casino and Hotel in Middletown (Lake County), said the online proposal helps smaller tribes that are far from major population centers. If sports betting were confined to only in-person betting at tribal casinos and racetracks, casinos like the one his tribe operates wouldn’t see much uptick in foot traffic.
“We are looking to obviously move into e-commerce, and this gives us an opportunity to do that,” said Simon, who is also a Lake County supervisor.
But Fairbanks, who represents the in-person proposal, discounted the impact of a few tribes supporting the online proposal, noting that more than 60 tribes oppose it.
“The vast, vast majority are opposed to the (online) measure, and we will make sure that voters are aware of that,” Fairbanks said.
Iden, of Sportradar, said it “isn’t surprising” that some smaller tribes are partnering with the commercial operators. He has seen that happen in other states, including Michigan, where he served. The California online gaming proposal requires a commercial operator to be paired with a Native tribe to be able to enter the market.
Iden said that sort of partnership model has been used in other states “where commercial operators enter the market through a tribal brick-and-mortar operation. Traditionally, smaller tribes really benefit from that because of the money that’s involved.”
The larger question will be whether Californians — particularly the younger generation of digital natives who grew up doing many of life’s activities online — will support a measure that would force them to travel to a casino or racetrack to legally bet on a sporting event.
“That is a huge challenge because everything is really online these days,” said Geoff Zochodne, who covers the gaming industry for Covers, an online site. “That’s where the customer is increasingly located for all businesses.”
Fairbanks didn’t dismiss the tribes pursuing online gaming in the future but said that the current online measure isn’t the way to go “at this point in time.”
“Maybe technology will change. But right now, there’s no 100% foolproof way to ensure that kids under 21 aren’t gambling,” she said.
Iden said the real challenge will be for voters, who will see a blizzard of competing ads. Some ads opposing the online-only proposal have been running for weeks online and on TV — even before the measure officially qualified for the ballot.
“The real question becomes how much confusion is created by these two initiatives,” Iden said. “If you’ve got lengthy ballot proposals that you have to sit there and read, you sort of question whether or not people just get confused and they vote no on both.”
Compliance Updates
Football Season Kicks Off: Arizona Department of Gaming Warns of Gambling Scams and Highlights Consumer Protection Tools
September is Responsible Gaming Education Month, and the Department is reminding fans to play it safe with tools like Check Your Bet, self-exclusion, and the 1-800-NEXT-STEP helpline.
With the football season underway, the Arizona Department of Gaming (“the Department”) is warning Arizonans about the growing risks of unlicensed online casinos and sportsbooks. September also marks Responsible Gaming Education Month, making this an important time to remind fans that if you choose to play, play it safe by choosing a regulated operator.
Regulated gaming offers important consumer protections, helping ensure fair play, data security, accountability, and a safer overall experience. The Department has seen an increase in consumer complaints about unlicensed gambling operations in recent months, a trend expected to intensify as football season kicks off and the busiest event wagering period of the year begins. Common issues include unfair or misleading terms, difficulty withdrawing winnings, and accounts being frozen without explanation, often after a withdrawal request.
“Responsible Gaming Education Month is the perfect time to remind Arizonans that while legal, regulated gaming options are available to all Arizonans ages 21+, there are also deceptive operators eager to take advantage of fans during football season,” said Jackie Johnson, Director of the Arizona Department of Gaming. “Unregulated platforms lack responsible gaming safeguards, age verification, and offer no consumer protections, which puts Arizonans at risk. That’s why the Department is promoting resources to give every Arizonan the tools they need to make informed choices and play responsibly.”
To help protect Arizonans, the Department has launched a new Responsible Gaming website and is spotlighting three key resources this month:
- Check Your Bet– If you choose to participate in gaming, opting for legal, regulated operators is the best way to protect yourself. Playing responsibly means knowing your operator is licensed and that you meet Arizona’s legal gaming age of 21+. This online resource helps Arizonans confirm they’re using a legal site, which helps protect against fraud, identity theft, and other risks.
- Self-Exclusion Program– A free, confidential program that allows people to voluntarily limit their access to Arizona’s regulated gaming. The statewide self-exclusion program was established in 2004 for casinos and expanded in 2021 to include retail sportsbooks, event wagering platforms, and fantasy sports platforms. More than 550 Arizonans enrolled in the last fiscal year, and over 11,000 have chosen this option since the program began.
- 1-800-NEXT-STEP – A confidential, 24/7 helpline for anyone seeking support right now, whether for themselves or someone they care about. The helpline connects Arizonans with caring professionals who can provide immediate assistance, low and no-cost treatment referrals, and financial counseling.
These resources, along with more tips and tools, are available at the Department’s new webpage: gaming.az.gov/ResponsibleGaming.
Top 5 Signs of an Unlicensed Gambling Site
The Department urges Arizonans to be cautious and watch for these warning signs that a site or app may be fraudulent or unlicensed:
- No Responsible Gaming Protections – Licensed operators are required to provide responsible gaming tools, including age verification to ensure no one under the age of 21 can play, deposit limits, time limits, self-exclusion options, and access to the 1-800-NEXT-STEP helpline. If you don’t see these tools, it’s a red flag.
- Too-Good-to-Be-True Offers – Promises of “guaranteed wins,” oversized bonuses, or “risk-free” bets are common scam tactics.
- Trouble Getting Paid and No Dispute Resolution – Unregulated sites often delay or deny withdrawals, with little to no process for resolving disputes.
- Unusual Payment Methods – Sites that only accept cryptocurrency, wire transfers, or gift cards instead of secure, standard payment options are a major warning sign.
- Copycat Branding or Poor Site Quality – Some fraudulent sites impersonate legitimate Arizona casinos or sportsbooks, using misspellings, broken links, or look-alike names to trick players into downloading their app or visiting their site.
“Licensed operators in Arizona are required to provide responsible gaming safeguards. When people play on unregulated sites, those protections are missing and people are more vulnerable,” said Elise Mikkelson, Director of the Division of Problem Gambling. “That’s why Arizona’s helpline exists: to ensure every Arizonan has access to the support they need. With more than 11,000 Arizonans choosing to enroll in the state’s self-exclusion program since it began, it’s clear that no one is alone in taking steps to protect themselves. And if you or someone you know is struggling, help is always available.”
How to Report Suspicious Gambling Activity, Fraud, or Identity Theft:
Arizonans who believe they may have encountered an unlicensed or suspicious gambling site are encouraged to report it directly to the Arizona Department of Gaming. Reports help the Department investigate and take action to protect consumers statewide. If you find a website, app, or business that claims to offer legal gaming in Arizona but does not appear to be licensed or authorized by the Department, follow these steps:
- Document the website URL, app, business name, and any promotional materialsassociated with the platform or operator.
- Report itto ADG at [email protected] and the Arizona Attorney General’s Office Consumer Information and Complaints Unit at (602) 542-5763 or by visiting azag.gov/consumer.
- Cease activity on the platform and monitor financial accounts for unauthorized transactions.
- If you suspect identity theft, report it to the Federal Trade Commission (“FTC”): for help in English, go to IdentityTheft.gov, and for help in Spanish, go to RobodeIdentidad.gov.
The Department takes complaints about all illegal gambling seriously. Reports can be made anonymously.
California
California Gambling Control Commission Issues New Precedential Decision on Licensing Requirements
The California Gambling Control Commission has issued a new Precedential Decision that addresses licensure requirements for funding sources of Third-Party Providers of Proposition Player Services (TPPPS).
The decision, formally titled Precedential Decision 2025-01, was adopted on August 21, 2025, and is now available on the Commission’s Precedential Decisions page
along with all prior precedential rulings.
This latest decision provides further clarity on licensing obligations and regulatory expectations for individuals and entities involved in funding TPPPS operations—a key aspect of maintaining integrity and oversight in California’s regulated gambling industry.
Stakeholders and members of the public can stay informed by subscribing to receive notifications when new Precedential Decisions are under consideration or adopted. The Precedential Decisions Subscription Signup Form, along with other subscription options for Commission meeting agendas, newsletters, and rulemaking updates, is available on the Commission’s website.
For questions or additional information, contact the Commission at (916) 263-0700 or via email at [email protected]
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Compliance Updates
Arizona Department of Gaming Issues Cease-and-Desists on “Phoenix Dream Home Sweepstakes”
The Arizona Department of Gaming (ADG) issued cease-and-desist orders to Raffall, a company based in the UK, and to an Arizona resident using the platform to promote the “Phoenix Dream Home Sweepstakes,” currently advertised online and through a separate website, winthisazhome.com, which is marketing the chance to “Win a Luxury $1.3M Arizona Mountainside Home”.
According to the Department’s investigation, the promotion required participants to purchase entries for a prize to be awarded and promised either a home transfer or a cash payout, depending on sales volume. The investigation further determined that the organizers intended to profit from ticket sales. Based on these findings, the Department alleges the activity constitutes an illegal gambling operation under Arizona law.
As part of the enforcement action, Raffall has been directed to remove all gambling-related drawings or giveaways targeting Arizona residents, and the Arizona resident has also been ordered to cease promoting or conducting any unlawful gambling activity.
“Illegal gambling can take many forms and it does not matter if it is labeled a sweepstakes, raffle, giveaway, or drawing. Unregulated operations put Arizonans at risk because there is no oversight, and therefore no accountability or safeguards in place. The Department will continue to take enforcement action to protect consumers, and we urge the public to learn what is legal before participating in or hosting any gambling activity,” said Jackie Johnson, Director of the Arizona Department of Gaming.
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