This week’s Indian Gaming Tradeshow & Convention is offering attendees the opportunity to discuss topics impacting tribes and companies in the gaming industry.
The topics include emerging trends in interactive wagering and whether they pose a threat or provide opportunities for tribes and their partners. The trends discussed by industry experts at the convention included prediction markets and online sweepstakes.
The trends were discussed by a panel that included American Gaming Association Government Relations Vice President Tres York, Womble Bond Dickinson LLP Partner Stephen Hart and Light & Wonder Head of Government Affairs Howard Glaser.
The discussion, moderated by Indian Gaming Association Conference Chair Victor Rocha, also included expertise from Pechanga Band General Counsel Steve Bodmer.
Innovation claim sparks conversation
Prediction markets and online sweepstakes are providing gambling brands and regulators with unique challenges as they navigate or circumvent existing gaming laws.
“They are all forms of unregulated gaming which are inundating the U.S. and are the largest attack on tribal sovereignty in modern history,” said Glaser.
The emergence of these verticals has been met with regulatory backlash but is considered a new way to push innovation in a dynamic gaming industry that continues to take shape.
“The regulated gaming industry innovates all the time,” said York during the discussion. “Innovation is good but innovation doesn’t always equal legality. Whether it’s sweepstakes, gambling on a state-by-state basis, or the CFTC deciding what exactly a sports futures contract is. All of these products flooding the market are under the guise of innovation.”
The perception of being innovative impacts how consumers engage with event contracts, which many argue are financial investments.
“It’s an investment, that’s what they claim,” added York. “That it’s a financial tool to earn money that you are investing in.”
Where tribes stand on the issue
The CFTC and regulators across the country are taking action against prediction markets and sweepstakes as they continue to circumvent rules but leave out tribal communities.
“The only entity missing from that battle are the tribes,” added Glaser. “Arguably, the tribes have the most at stake in this.”
Federally recognized tribes across America are impacted by the prevalence of prediction markets, sweepstakes and social casinos as they take away from profits and growth.
“This is 100% a threat,” said Bodmer. “But this was a threat years ago that we’re just now talking about. Now, we’ve got to figure out how to make this an opportunity.”
Event contracts will continue to spark discussions as operators including DraftKings have voiced their willingness to potentially explore new opportunities in the prediction market space. DraftKings is considering event contracts as regulators continue to craft standards.
Tribes across the country will also continue to shape their perception of the issue.
Their stance was initially voiced in February with organizations including the Indian Gaming Association, the California Nations Indian Gaming Association and the Tribal Alliance of Sovereign Indian Nations submitting feedback about event contracts to the CFTC.
The tribal groups submitted feedback opposing event contracts at the request of the CFTC, which plans to hold roundtables to discuss the regulation of event contracts nationwide.
MLB has also voiced its desire for a regulatory framework for prediction markets.
