Daily Fantasy Sports (DFS) vs. Tribal Sovereignty

The conflict between **Daily Fantasy Sports (DFS)** and **Tribal Sovereignty** centers on the legal classification of gaming and the economic rights granted by the **Indian Gaming Regulatory Act (IGRA)**. While tribes operate under strict state compacts that often grant them **Class III gaming exclusivity** (casino/sports betting) in exchange for revenue sharing, DFS operators utilized a **2006 UIGEA exemption** to operate as "games of skill," bypassing these compacts and taxes. **Key phases of this conflict include:** * **The Exclusivity Breach:** Tribes argued that state regulation of DFS violated their monopoly rights, threatening to withhold state revenue payments (e.g., Arizona, Florida). * **The California Ballot War (2022):** A record-breaking $460M political battle where tribes defeated **Prop 27**, a measure funded by commercial operators (DraftKings/FanDuel) to legalize online betting, viewing it as a threat to tribal self-sufficiency. * **The "Pick'em" Crackdown:** Recently, tribes have successfully pressured regulators to ban "Pick'em" fantasy apps (PrizePicks, Underdog) which mimic player prop betting, arguing these are illegal house-banked wagers undermining regulated tribal sportsbooks.