During a panel held at the Indian Gaming Association (IGA) Tradeshow & Convention, Tribal regulators addressed the impact of illegal markets, as well as the efforts made by prediction market operators to evade federal regulation.
Viejas Band of Kumeyaay Indians Attorney General Tuari Bigknife had little issue describing prediction market activity as “illegal,” and believes the CFTC has a “fundamental lack of understanding” when it comes to how operators should be regulated.
National Tribal Gaming Commissioners & Regulators (NTGCR) Gaming Commissioner Richard Armstrong warned the audience that prediction market activity has “crept into” Tribal-regulated jurisdictions and is “undermining and circumventing” primary regulations.
Armstrong compared the efforts to those made by daily fantasy sports (DFS) operators and sweepstakes casinos, while Wilton Rancheria Gaming Commission Executive Director Wes Stanley believes regulators are “stuck between a rock and a hard place" when it comes to prediction markets.
Tribal Gaming Commission Executive Director Jason Andrews shared how regulators must balance the risk of gaming innovation with generating additional revenue streams for Tribal communities, specifically with online gambling and sports betting.
Armstrong brought attention to concerns regarding DraftKings’ new DK Replay product, and how the offering could build upon challenges faced with historical horseracing (HHR). Describing the product as “historical baseball,” the NTGCR Gaming Commissioner seems to believe historical gambling may be expanding at a rate previously unforeseen by Tribal regulators.
Bigknife commented on how the confusion around prediction markets is generated due to inconsistent state laws, rather than complications related to what type of offerings are being put forth.
"If it looks like a duck, swims like a duck and quacks like a duck, then it probably is a duck," Bigknife stated.
Stanley said the lack of a permanent Chairman position for the National Indian Gaming Commission (NIGC) has “stalled” regulatory efforts made by Tribes, but does believe the NIGC has come “a long way” since he first began collaborating with the Commission.
He also appeared confident prediction markets will eventually find its place in gaming, given the resolutions eventually found with sports betting and iGaming.
“With prediction markets and all these things happening, it probably will become legal at some point. But how do we get there?” Stanley said.
“Just getting there is going to be a tough road, but I believe keeping that open communication between Tribes and operators is critical in doing so.”
Armstrong critiqued states which have sent cease-and-desist letters to operators rather than filing enforcement action, asking the fellow panel speakers whether they “want to be the first guy at the bar who throws a punch, or the second.”
Bigknife closed the panel by reminding the audience of the “vast experience” Tribal regulators have in fighting against illegal forms of gambling, and urged attendees to reach out to their state lawmakers to help bring attention to the dangers of prediction market activity.
Following the introduction of the Prediction Markets Are Gambling Act, Indian Gaming Association Chairman David Bean expressed his support for the bipartisan legislation on March 23
