During an educational session at the Indian Gaming Tradeshow & Convention in San Diego, a group of industry leaders spoke about the power of partnerships between gaming brands and federally recognized tribes.
The topic was discussed by panelists, who addressed the advantages of commercial operators partnering with tribes and what it means for long-term growth potential.
The discussion, moderated by Indian Gaming Association Conference Chair Victor Rocha, included DraftKings CEO and co-founder Jason Robins and FanDuel Group President Christian Genetski.
Establishing partnerships with tribes
DraftKings secured its first tribal partnership in 2020 with a market access deal in Michigan with Bay Mills Resort & Casino. The deal solidified DraftKings’ footprint in tribal gaming while providing it with access to an established gaming community.
DraftKings provided Bay Mills with the opportunity to collaborate with a marquee operator.
“Each state is different but what we saw at Bay Mills was a tribe that really wanted the partnership and understood that this was something that could truly be a win-win,” said Robins during the discussion. “I feel like what we’ve been able to do together has been impactful for us and impactful for them and that’s what is really important to us.”
Tribes also provide operators with a chance to find a long-term, valuable partner.
“In most states, we are partnered either with a tribe, a racetrack, sports team or casino,” said Genetski when discussing tribal deals. “In all those partnerships, we take the same high-level philosophy which is, we are going to be in business together for a long time.”
The panel also discussed the importance of operators maintaining tribal relationships.
Genetski detailed how Mohegan Sun Casino in Connecticut initially turned down a partnership with FanDuel before reconsidering the deal leading to a retail partnership.
“We found a path to a partnership that worked with both parties,” added Genetski. “It hasn’t always been smooth sailing but those are the partnerships where you really get to know one another. You really get to find out what kind of partner you have.”
Tribal partnerships in the future
The panelists also considered what the future of tribal gaming can look like for operators. Markets with tribal-focused regulation, like California, can spark a new wave of growth.
“There’s no other state out there that has the ability to impact our long-term growth than California,” added Robins. “It is a critical state and having tribal relationships and partnerships is absolutely essential. There’s no other way to do it here.”
Robins expressed the importance of California following a failed ballot proposition.
In 2022, California voters rejected a sports betting ballot initiative after commercial operators and tribal communities supported two competing measures on the issue.
The failed measures, Proposition 26 and Proposition 27, saw FanDuel, DraftKings and other organizations raise approximately $460 million to support the now-failed efforts.
Tribal partnerships will continue to be discussed between operators and gambling organizations as the U.S. gaming industry continues to change with the emergence of new wagering states and the development of established gaming markets. The growing popularity of social casinos and sweepstakes will also help drive the conversation.
