A growing number of California tribal casinos are developing partnerships with larger corporations to expand their reach and access a bigger cash flow. This speaks to the evolving nature of casinos in California and beyond.
At this point, we’re already used to the casino scene changing according to consumer needs, technological advances, or simply innovation. Take sweepstakes casinos, which have faced their fair share of controversy but remain a consumer favorite, especially in states with stricter gambling laws. A recent article by casino expert Andreea Stanescu touches on the reasons for this popularity, as well as the chances of enduring success (Source: https://www.cardplayer.com/online-casinos/sweepstakes-casinos).
In the case of tribal casinos, the current wave of partnerships has to do with circumventing existing laws while also creating mutually beneficial relationships. As per California law, tribal casinos have to be under the control of the native tribes. But many of these tribes have found it beneficial to partner with larger companies that are looking to enter the market.
An example of this is Gaming and Leisure Properties, Inc., which is looking to finance and lease the Acorn Ridge Casino in Amador County. In pursuit of this, the company is teaming up with a Native American tribe and will also commit $110 million in loans to finance a long-term lease arrangement.
Another company that is prominent in the California gambling sector, in partnership with native American tribes, is Hard Rock International. Its latest endeavour is a proposed $600 million project with the Tejon Indian Tribe in Kern County. These are just two of many examples, but they show that the future of gambling in California will look vastly different.
The native American tribes will retain control and ownership over these casinos, but through various partnerships, can expand their operations.
Besides the rise of sweepstakes and partnerships between major corporations and tribal casinos, the California gambling scene is also set to be turned on its head in terms of advertising. Recently, a major lawsuit was brought against on-air personality Ryan Seacrest due to his public endorsement of a gambling company.
“Who doesn’t love games? I’m now excited to announce my partnership with Chumba to bring the fun home all year long, making it accessible and easy to all,” he said during a promotional post for the business.
Specifically, it was a sweepstakes casino called Chumba Casino, which the plaintiff claims is not duly registered in the state. There was also a lot of pushback against advertising sweepstakes casinos as a concept within the lawsuit, which shows the growing controversy surrounding them.
Over the next few years, we will see more tribal casinos expand within California with bigger machines, bolder advertising, more added-on services, and much more. With the power of major corporations beside them, the tribes will reap the financial benefits while still maintaining ownership.
Sweepstakes as a gambling avenue will also unravel, with possible laws being passed to encourage or discourage it. Either way, gambling has always been in a state of evolution, and that is not stopping anytime soon.
