The California Nations Indian Gaming Association declares its purpose in large lettering on its website: “Protecting the sovereign right of California tribal governments to operate gaming on their lands.” One need not particularly like gambling to believe the tribes do indeed have the right to operate casinos, as has been repeatedly upheld through a variety of state and federal laws.
But the tribes aren’t only about protecting their gaming rights – but restricting the rights of competitors. The tribes have invested tens of millions of dollars in political campaigns over the years that help them with such “rent seeking” – i.e. “manipulating public policy … as a strategy for increasing profits.”
The latest example is Assembly Bill 831 by Assembly member Avelino Valencia, D-Anaheim. The bill, which we urge Gov. Gavin Newsom to veto, “would prohibit an online sweepstakes game … that simulates or mimics casino-style gambling or a gambling-themed games.” It’s targeting a growing type of online game whereby players use virtual coins and can redeem them for prizes.
As CalMatters explained, “The tribes told lawmakers the business model is a dangerous form of unregulated gambling that needs to be banned in California.” But the next sentence gives the game away: “They argue the virtual companies offering the ‘dual-currency’ games are cutting into the exclusive rights California voters … gave tribes to offer gambling at their casinos.” It has nothing to do with protecting consumers and everything to do with protecting their profits.
It’s noteworthy that some smaller tribes are opposed to the bill. One argued in the official opposition in the legislative analysis that “smaller tribal enterprises like ours often lack the scale and resources of large, well-established gaming operations that dominate prime markets.” This isn’t unusual, as previous ballot initiatives regarding, say, sports betting have pitted different tribes against one another based on their particular economic interests.
California tribes should remain free to offer whatever games they choose, but they ought to win these battles on the merits of their offerings rather than use the government to carve out ever-expanding monopolies.
