In news that shouldn’t surprise most people, FanDuel executives told attendees of Flutter Entertainment’s Investor Day conference last week that the U.S. sports betting operator was still setting its sights on California as a critical market for expansion.
What has changed, though, since Golden State voters handily defeated a constitutional amendment to legalize California sports betting two years ago is FanDuel’s approach. CEO Amy Howe told attendees that the company is working to be “more proactive” in its public affairs strategy pertaining to both expansion and sustainability
“We've got to get out there and build the right coalitions and relationships to really strengthen and align with the right advocates,” Howe said. “As you can imagine, doing this effectively is going to require additional investment, whether it's in lobbying, public affairs, coalition building or internal resourcing, and I am confident that we have an outstanding team. We have bolstered our team quite a bit in the last couple of years to make sure that we can win on both fronts.”
FanDuel was part of a consortium of commercial operators opposed by tribal gaming interests in the most expensive referendum campaign in U.S. election history. More than $400 million was spent by both sides as the online sports betting measure failed to garner 20% support in 2022. A tribal-backed amendment to legalize only brick-and-mortar sportsbooks also lost by roughly a 2-to-1 margin.
Former Tribal Leaders Now Working For FanDuel
Part of FanDuel’s strategy has already been implemented.
In February, the company hired former National Indian Gaming Commission Chairman E. Sequoyah Simermeyer as vice president for strategic partnerships. Simermeyer’s hire came just months after Rikki Tanenbaum, who previously served as the COO for the California-based San Manuel Band of Mission Indians, became a senior vice president for strategic partnerships.
Those moves came after California tribes reiterated their message that any attempt to legalize sports betting in the state should be led by them. There are 109 federally recognized tribes in the state, and 76 have recognized gaming compacts with the state, according to the American Gaming Association. Of those, 63 tribes own and operate 66 casinos.
Why California Matters
While sports betting is legal in 38 states and the District of Columbia, the nation’s two most populous states remain off the board for licensed operators. Combined, California and Texas account for more than a fifth of the country’s population, meaning there are still plenty of new customers available as well as existing fantasy sports players to convert into bettors.
Should online wagering ever become legal in California, the state would quickly become the top market in the country. With a population of about 39 million, it is roughly equivalent to the 20 least-populated states with legal wagering combined.
After losing decisively in 2022, FanDuel California, DraftKings and other commercial operators all chose not to pursue a petition drive for a referendum to go on this year’s Nov. 5 ballot. Because of that, the earliest it would go back to voters for consideration in 2026, contingent on providers getting the requisite number of registered voters to sign the petition.
To get a question on the 2026 ballot, supporters would need to submit their proposal to the state in the latter half of next year, giving them enough time to circulate and gather signatures.
