Sports-betting companies hoping to partner with tribal casinos must understand the key difference between them and commercial operations, James Manning advised Wednesday.
“(Tribal casinos) are focused on delivering services to the community and not as much on profitability,” said Manning, director of slot operations for Snoqualmie Casino near Seattle, who previously worked 18 years for gaming giant IGT.
Manning spoke during the panel discussion, “New Horizons for Tribal Sports Betting: Lessons Learned from Different Journeys,” on the first day of the SBC Digital North America virtual conference,
Also on the panel were Sheila Morago, executive director of the Oklahoma Indian Gaming Association; Vik Shrestha, senior director of business development for IGT PlaySports, which provides sports-betting platform technology; and Marcus Yoder, senior vice president of sales for GAN Sports, which provides software for online gambling and sports betting.
Richard Schuetz, a gaming and regulatory consultant who previously served as executive director of the Bermuda Casino Gaming Commission and as president and CEO of the Stratosphere Hotel-Casino (now The Strat) in Las Vegas, moderated.
Morago, a member of the Gila River Indian Community, amplified on Manning’s observation.
“Gaming provides us housing, health care, scholarships for our kids, elder care, and infrastructure. It’s more than a bright, shiny thing we have on our tribal lands. The people who have had longevity with tribes are the ones who … understand the value system attached to it and aren’t fly-by-nights who want to come in, make a buck, and leave.”
Morago said she doesn’t expect sports betting to be available in Oklahoma for a couple of years. Manning said tribes in Washington expect final approval of a sports betting compact this year. Shrestha described the “complicated” situation in New York, which has retail sports betting in tribal and commercial casinos, but not mobile wagering. In Florida, the governor has signed a compact with the Seminole Tribe to allow sports betting, but several legal challenges over mobile sports betting are expected. Connecticut and Arizona also hope to add sports betting this year.
Schuetz said the “crown jewel” is California, where a November 2022 referendum will decide whether to allow sports betting at tribal casinos and horse-racing tracks. A former commissioner for the California Gambling Control Commission, Schuetz said the state’s tribal casinos generate about a third of tribal gaming revenue nationwide.
All four panelists said they support the California measure.
“I’m ecstatic that it actually is going to take this long,” Yoder said. “This gives each of the tribal operators the time to hire, train, and become good at being sportsbook operators, just as they’re good at being casino operators. It also makes us (suppliers) know we’re not all running frenetically at the same target. It’s going to allow all of us to execute on this in a very thoughtful and less expensive manner.”
He added that tribal gaming operators, who have been providing revenue to the state, deserve the first shot at running sportsbooks.
Manning advised tribes to vet potential sports-betting partners and get one early in the process.
“As you’re setting up regulations and things like that, you’ll have an expert to bounce ideas off, so you’re not putting yourself in a restrictive pigeonhole that you’re going to regret later,” he said.
Shrestha stressed the need for operators to educate themselves about the sports betting marketplace and what form of business model will work best for them. He and Yoder said another key is understanding revenue goals for operators and their tribal councils. “If you’re going for market share, it’s not going to be profitable immediately,” Yoder said. “If you want to go for profitability, it’s not going to be a big market share to begin.”
Even with delays in sports betting for Oklahoma and California, Morago is excited about the future. “This is coming and people are starting to plan for inevitability,” she said. “Anything that helps bring more money down to the bottom line for our local communities is a win in our book.”
