Some Michigan tribes , too , have made their peace with online gaming . In 2020 , when mobile sportsbooks and online casinos became legal there , Bryan Newland , then chairman of the Bay Mills Indian Community , said Detroit ’ s three commercial casinos — MotorCity , Greektown , and MGM Grand — plus the state ’ s iLottery were “ eating our lunch year after year .”
Newland told Pechanga . net , “ We were faced with the prospect of evolve or die when it comes to internet gaming .”
Bay Mills teamed with DraftKings to run its online and retail sportsbooks and online casino , reportedly with positive results . Another Michigan tribe wasn ’ t as lucky . The Hannahville Indian Community , which operates the Island Resort & Casino in the state ’ s Upper Peninsula , partnered with Twin- Spires , a unit of Churchill Downs , on iGaming . But in 2022 , TwinSpires ditched its online gaming business ( except for horse racing ), leaving the tribe high and dry .
“ We were kind of shocked ,” Tony Mancilla , Island Resort ’ s general manager , told the New York Times . “ We had our prom dress on , and we didn ’ t have a date .”
In the aftermath , Hannahville ’ s iGaming revenues took a dive , dropping almost two-thirds from $ 16.7 million in 2021 to $ 5.8 million in 2022 . The tribe has since joined with 888 and Sports Illustrated to offer online sports betting , but hasn ’ t resumed online casino games . According to the Times , it ’ s now focusing on investments in real estate and golf courses as revenue generators .
Cutting a Path
David Bretnitz is senior director of sales for Kambi , a provider of sports betting technology to tribal and commercial operators . He says the mobile industry can drive “ greater share of wallet and future-proof tribes ’ businesses ” by bringing in a new customer demographic . But how to get the pieces in place , while safeguarding tribal rights along the way ?
“ First , I think we can all agree that tribes have the wherewithal to do this on their own ,” says Bretnitz . “ So there are two options : going the B2C route , where you partner with one of those larger commercial groups to get to market , or utilizing a company that provides B2B services .”
There are advantages and drawbacks to both , he says . “ Partnering with a B2C company provides national brand recognition that lets tribes compete a bit more and hand off those day-to-day management responsibilities . For the tribe that ’ s very well-versed on the gaming side but has zero experience in sports betting , they get a guaranteed revenue stream , albeit less than if they
“ A high-performance sportsbook enables tribes to compete with the FanDuels and DraftKings , and the lion ’ s share of the revenues stays with the tribe .”
— David Bretnitz , Senior Director of Sales , Kambi
were to partner with a B2B provider .”
In such deals , he says , the bigger slice of the revenue pie goes to the commercial group , “ which bears the brunt of the responsibility as far as risk , the on-property buildout for a sportsbook if that ’ s in play , or setting up that online sportsbook . So they ’ re taking on more of that exposure .”
On the B2B side , “ the strength of the sportsbook product itself will allow tribes to ultimately operate on their own . A high-performance sportsbook enables them to go out and compete with the FanDuels and DraftKings , while retaining full control of their brand , maintaining their ( league ) partnerships , and controlling the vision going forward . And the lion ’ s share of the revenues stays with that tribe . So — more risk , more reward .”
Tribes don ’ t need to compete from a marketing perspective , he adds , offering $ 2,000 sign-on bonuses just to build a database , like the big names in the space . “ They can measure success in driving long-term sustainable revenues versus just saying , ‘ We acquired a customer .’”
‘ A Unified Voice ’
To date , only six U . S . states have iGaming , while mobile sports betting has spread to 26 states and counting . As the rollout continues , expect mixed results depending on the market .
Meanwhile , California remains the holy grail for commercial operators . Last fall at G2E , DraftKings CEO Jason Robins said Prop 27 — the sports betting initiative supported by commercial sportsbooks and a handful of tribes — will be back , and “ more than likely ” will pass in 2024 .
But maybe not — Prop 27 didn ’ t just fall short at the polls last November , it flamed out , rejected by more than 82 percent of voters ( Prop 26 , the tribal measure , lost by 67 percent , but the tribal coalition behind it was more intent on defeating 27 than passing 26 ). James Siva , chairman of the California Nations Indian Gaming Association and a member of the Morongo Band of Mission Indians , slammed the commercial measure as “ a massive explosion of gaming that ( would ) directly undercut tribal sovereignty and self-sufficiency .” Siva added that having online betting “ dictated ” to sovereign nations is “ unacceptable .”
“ Whether online gaming is three years down the line , five years down the line , if it ’ s 10 years down the line ,” he said , “ it needs to be a tribal decision .”
For that reason , Wyman says , tribes must “ structure legislation so all the tribes support it ; otherwise , they ’ ll have to fight about it every time it comes up . They need to do what they can , year in and year out , to make sure they control the conversation and speak with a unified voice when it comes to legislative matters , making sure they maintain exclusivity around online gambling of all forms , casino and sports .”
20 TRIBAL GOVERNMENT GAMING 2023