— Anika Howard , President and CEO , FoxPlay
He said the model was “ legal fiction ” for the reasons stated above : the bets would take place beyond tribal land , in the hands of statewide bettors as part of the virtual ether . Two years later , the two sides remain at an impasse .
Double Jeopardy
Tribes have two good reasons to be skeptical of online and mobile betting . One is the potential impact of online business on casino foot traffic . While commercial casinos face the same challenge , it could be harder to navigate for smaller operations , which may not have the reach of , say , a Caesars or an MGM . But how much does online gaming actually threaten land-based ?
“ To some extent , it ’ s an unanswered question ,” says Brian Wyman , gaming analyst and senior vice president of operations and data analytics for The Innovation Group ( TIG ). “ Most operators agree that in the long run , online gaming will at least partially cannibalize land-based — some people will save the trip and stay home , and others may play online on Tuesday , then say , ‘ Oh , that was my budget , I won ’ t go to the casino on Friday .’”
Big operators work around it by using online as a “ hook ,” with appbased rewards to be redeemed at the land-based venue or sister resorts around the country . In that way , online gaming gives broader-based operations “ the ability to optimize their reach and their brand ,” says Chris Irwin , TIG ’ s senior vice president of Native American Services . “ If you ’ re an online gambler in North Jersey , you can get points to go down to Atlantic City and stay for a weekend . Or you can go out to Vegas to stay , or other properties around the country . It ’ s really incentive-driven . Not many tribes can capitalize on that .”
Creeping Commercialism
The second reason and the larger concern among tribes is the possibility that online gaming will be thrown open to commercial operators or operating partners , creating competition that was unimaginable when many tribal compacts were written .
That possibility is already a reality in some states . If California voters ultimately approve online and mobile gaming , they must also decide whether to restrict it to reservations or make it available statewide . In the latter case , the licenses could be up for grabs by behemoths like FanDuel and DraftKings — and lawmakers would like nothing more than to dip into those deep pockets . Needless to say , that kind of competition could siphon off revenues that tribal nations rely on .
“ In a lot of markets , gaming and the exclusive access to gaming is the lifeblood of tribal governments , supporting hospitals , supporting police and fire departments ,” says Wyman . “ It ’ s no exaggeration to say this is a matter of life and death .”
As Sheila Morago , executive director of the Oklahoma Indian Gaming Association , recently pointed out , “ This is actually money for higher education , for health care , for infrastructure .” In comments to Gaming- Today . com , Morago said , “ They ’ re not making decisions on whether or not you get a new yacht or enough money to buy a new Mercedes . It ’ s about making sure that our kids have money to go to school .”
Despite the longstanding ties between tribal and state governments as well as the jobs and revenues that tribes have added to local and state economies , the big guns of commercial gaming are “ willing to pay big taxes and fees that historically haven ’ t come from tribes ,” says Irwin . “ Tribes may pay exclusivity fees , but not at the level of what commercial operators might pay in taxes .”
While the industry was slow to take off , it ’ s been accelerating ever since . In 2022 , online casinos in ( New Jersey ) brought in more than $ 1.6 billion in revenue , up 21.6 percent over 2021 and a 13-fold increase over nine years . Those figures , with all those zeroes , have lawmakers salivating . www . tribalgovernmentgaming . com 17