Prediction Markets a ‘Serious Threat’ to Tribal Gaming, Say IGA Panelists
At the 2025 Indian Gaming Tradeshow & Convention (IGA), industry experts raised alarms about the growing influence of prediction markets, sweepstakes casinos, and emerging fantasy sports platforms — warning that these verticals could lead to a “seismic shift” in gambling regulation and pose a “serious threat” to the tribal gaming industry.
Experts Sound the Alarm at IGA Panel
Moderated by Gene Johnson, EVP at Victor-Strategies, the panel featured notable legal and tribal advocates: Scott Crowell, Joe Webster, and Judy Shapiro. The discussion revolved around how non-traditional gaming models are rapidly gaining ground with little to no regulatory oversight, challenging the established tribal gaming structure.
Johnson opened the session with a presentation titled “Gaming 2.0”, spotlighting the rise of digital sweepstakes casinos, crypto-based gambling platforms, and prediction market operators. High-profile companies like VGW, which promotes games via celebrities like Paris Hilton and Michael Phelps, were cited as examples of how quickly these models are scaling.
Prediction Markets Overtake Sweepstakes as Key Concern
While sweepstakes have long been viewed as a competitor, prediction markets have now overtaken them as the primary concern for tribal gaming leaders. Crowell stressed that these operators often argue state law doesn’t apply to them — a loophole that has allowed them to grow rapidly and freely.
He added that mainstream sportsbooks like FanDuel and DraftKings may soon follow suit, entering these less-regulated spaces, further threatening tribal exclusivity and revenue.
Joe Webster echoed this sentiment, stating, “We’re potentially looking at a seismic shift in how sports betting and gaming are regulated.” He emphasized the unique challenge tribal operators face: being bombarded with multiple threats at once.
Technology and Loopholes Undermining Tribal Compacts
Judy Shapiro highlighted how advanced technology now allows operators to “make something look like something else” — in other words, platforms can operate like gambling sites without being classified as such, often circumventing tribal-state gaming compacts entirely.
Panelists collectively criticized the lack of intervention from regulators, particularly pointing to Attorney General offices that are, in their view, failing to take action against platforms exploiting legal gray areas.
Industry at a Crossroads
With $1.5 billion reportedly spent on sweepstakes in California alone, and the rapid rise of companies like PrizePicks, Underdog, Kalshi, and Robinhood entering the predictive gaming space, tribal gaming stakeholders are urging for stronger enforcement and regulation.
The panel concluded with a unified voice: unless legal frameworks evolve quickly, these new verticals could undermine tribal sovereignty, dilute revenues, and permanently alter the landscape of the U.S. gambling industry.