Understanding the unique political dynamics at play within individual states and Native tribes will be the difference between entrants to the U.S. that succeed and those that don’t, according to a panel at ICE Vox this week.
Pechanga Band of Indians’ general counsel Steve Bodmer focused particularly on California, where the battle to legalise sports betting continues to pose a challenge.
California cannot launch a sports betting market without changing the constitution, so the state is due to go to the polls in November. At present, that ballot will propose only retail betting.
“I believe the most relevant issue that consistently is missed is the politics. What’s at stake? A colleague of mine often quotes politician Tip O’Neill, who said, ‘All politics are local’. Right? So when you’re dealing with tribes, all politics are very local. When you’re dealing with the economic generator or an entire community, all politics are local”, he said.
In other words, having a generalised overview of “tribal gaming” across the U.S. is unlikely to equip an operator to build the kind of partnerships required to launch a viable legalised betting market in a state like California.
“As companies from Europe, we have conversations with the legislature and tackle it from that end. And no matter how many times I’ve said this, in this building or at other conferences or when they came to meet with us in California, you need to meet with these folks; you need to understand their political influence”, Bodmer added.
Also picking up on the unique position of the tribes, as part of the Tuesday afternoon “Shared Experience: Creating Effective U.S. Partnerships” panel, Trilogy Group founding partner and CEO Valerie Spicer explained that it’s critical to understand the tribes’ motivations and unique position within the industry.
“They’re part of the fabric of the state. They’re not a corporation that’s going to come set up early and go away. That’s their home. They’re going to be there forever and they’re very committed to it, because what they can do drives the economy of the community”, she said.
“They’re all going to have their own requirements and their forms are going to be just a little bit different. And no, you can’t just give them what you gave to other tribes, because they’re their own governments. They’re their own entities and you need to be respectful of that.
“And you really need to take the time up front and do some research and create your roadmap, understand the timeline it takes to get through that process. Because if you think you’re going to just go in, sign a contract, and go live, that’s not going to happen”.
Entain SVP for American Regulatory Affairs and Responsible Gambling Martin Lycka agreed that the U.S. is a unique proposition, but added that highlighted a few benefits compared with Europe.
“The big upside and advantage of the U.S. system are that even the regulators want to do business”, he said. “How can you help us as regulators, and ultimately the government, to bring this new business into our state and make the most of it.”
