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California Native American Groups Preparing to Confront Wealthy Sweepstakes Casino Industry

California indigenous communities prepare for another fight to safeguard their gambling ventures, as sweepstakes casinos emerge as the latest threat.

Contests Run by California Casinos at Risk Due to Challenges From Native American Communities
Contests Run by California Casinos at Risk Due to Challenges From Native American Communities

California Native American Groups Preparing to Confront Wealthy Sweepstakes Casino Industry

In a recent development, the California Nations Indian Gaming Association (CNIGA) and the Indian Gaming Association (IGA) have taken a stand against unregulated gambling platforms in the state, particularly sweepstakes casinos.

During a weekly webinar on Wednesday, Victor Rocha, the conference chairperson of the IGA, spoke about the issue, expressing concerns that these casinos exploit legal loopholes for unregulated gambling. Rocha believes that any new entry of gaming in California should go through the tribes.

Sweepstakes casinos are not traditional casinos, as real money withdrawals are not possible in the traditional sense. Players can use real money to buy non-withdrawable virtual coins in these casinos. The casinos offer casino-style games that are free-to-play, but the use of real money adds an element of uncertainty to the legality of these platforms.

The National Indian Gaming Commission (NIGC) Executive Director Jason Giles has proposed a solution to this issue. Giles suggests getting tribes from around the country to send cease-and-desist letters to sweepstakes casino operators. Meanwhile, CNIGA Chairperson James Siva is preparing to send letters to popular app stores to alert them about the presence of unlicensed apps.

The issue of sweepstakes casinos is not just a local concern. It has garnered attention from multiple regulatory bodies, including state gaming regulators who have recently sent cease-and-desist letters to offshore gambling site Bovada. The tribes are also targeting sweepstakes casinos as part of this fight.

The issue of player-banker games like blackjack and baccarat is a point of contention between tribes and cardrooms in California. This conflict is not new, as the tribes have been embroiled in a fight against cardrooms over the exclusivity of these games.

In an effort to raise awareness and gather support, Rocha plans to hold additional webinars on the matter, with guests including representatives from the American Gaming Association and a lobbyist from the Sports Betting Alliance.

Sweepstakes casinos have been under scrutiny from various circles in recent years. Social casinos, which are similar to sweepstakes casinos, have been under scrutiny as well. Numerous lawsuits have been filed against popular social casinos and app store providers like Apple and Google, alleging they profit from unlicensed gambling.

Despite the ongoing legal battles, sweepstakes casinos continue to grow in popularity in California. The situation remains fluid, with new developments expected as the fight against unregulated gambling in the state continues.

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