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There is no ‘one size fits all’ rule when it comes to gambling in the United States. In some states, all forms of gambling, from sports betting to the lottery, are completely legal, whereas in others, any activity involving placing a bet is strictly outlawed.
California sits somewhere in the middle of this spectrum: Indian casinos, parimutuel wagers, cardrooms, and the state lottery are all among the legal kinds of betting.
Recently, there has been a lot of talk amongst interested parties in the Golden State about legalizing sports betting, and many were hopeful that 2024 would be the year that it finally happened. So, what is the current state of sports betting in California, and will it be legalized any time soon?
California is one of only twelve states in the United States that have not yet made sports betting legal. Luckily, other forms of online gambling are accessible in California, including offshore online casinos. For those interested in partaking, we recommend checking out this list of the best paying casinos by Business2Community, compiled by iGaming expert Vlad Grindu. The relatively heavy laws surrounding gambling are unusual for a region known for its progressive rules in other respects, such as legalizing marijuana.
In 2023, two ballot initiatives were filed with the attorney general that would have permitted online and retail sports betting, and given tribes the exclusive rights to offer these services. This is not the first time that attempts at legalization have been made, and it more than likely will not be the last. One of the ballots, named The Sports Wagering Regulation and Tribal Gaming Protection Act, sought to change the California constitution and requested that tribes must part with 15 percent of all sports wagering GGR (gross gaming revenue), in order to contribute to the tribal sports wagering revenue sharing trust fund.
This concession, as well as others such as the prerequisite that tribes must give 10 percent of sports wagering GGR to a mental health and homelessness fund, are only part of what the ballots entail. Other information includes a 21+ age restriction, and a formal statement that only tribes are allowed to offer sports betting in California. At the time of these acts being proposed, there was high hopes that they would be successfully introduced. However, spirits are not quite so high anymore. Back in January of this year, the two ballots were put on hold due to dissatisfaction from the CNIGA (California Nations Indian Gaming Association).
The reasons for this further delay in the legalization of sports betting are complicated. A primary factor is that many tribes in California were strongly opposed to the terms of the ballots. Both The Sports Wagering Regulation and Tribal Gaming Protection Act withdrew their bids after the CNIGA expressed their opinion that “these initiatives attempted to use tribes’ good names” to further their own causes, and that “using tribes for your own gain will get you nowhere.” This does not mean that sports betting will not be legalized in the future, but that backers for the proposition must work in tandem with California tribes to create a trusting relationship. Either party using the other for an ulterior motive will only result in even more setbacks.
The CNIGA were also unhappy with the fact that they were not consulted at any point during the creation and presentation of the ballots. In other words, all terms regarding tribes (such as the significant GGR contributions) were drawn up without asking for any input from those who would be most impacted. As a spokesperson for the CNIGA summarized, “decisions driving the future of tribal governments should be made by tribal governments.” It’s not just tribal associations opposing the ballots, however. The SBA (Sports Betting Alliance), of which members include FanDuel and BetMGM, also spoke out in protest, stating that not gaining “widespread tribal support” will stall any “productive conversations for several years.” They also felt that the initiatives did not do justice to the idea of legalizing sports betting, and would “prevent the market from reaching anything close to its potential.”
No one expected either ballot measure to ever be filed in the first place, as they were the latest in a long line of legalization attempts that have unfortunately failed. Studies showed there was a lot of popular support for sports betting as far back as 2022, and propositions to allow the activity were introduced in the latter half of the year. Two sports-betting initiatives appeared on the November 2022 ballots, but both were rejected by voters. Luckily for the citizens of California, they have many other kinds of betting to pick from while waiting patiently for legalization to take place. As with many other states, the trend of crypto casinos is taking over, with new offshore sites popping up daily. Those who have a passion for sports can place wagers at racetracks, betting on the outcome of horse races, which has been legal since 1933.
Although it may seem like sports betting will not be legalized anytime soon, there have been positive steps in the right direction. A recent panel in Anaheim, at the Indian Gaming Tradeshow & Convention, saw bridges built and relationships mended. The CEO of FanDuel, Amy Howe, spoke up on how crucial the relationship between gambling operators and tribes was in order to make sports betting legal in the future. During the panel talk, Howe opened the platform to former members of the San Manuel Band of Mission Indians, Rikki Tanenbaum and Frank Sizemore. This marked a significant change in the attitudes between both parties, which had been frosty since the failed ballots. In 2024, we’re sure to see a new alliance, based on trust, respect, and mutual interests.
Despite differences between commercial operators and tribes, everyone understands that legalizing sports betting is an inevitability. It is a matter of when, not if. For the process to begin, and continue constructively, all involved groups must commit to listening to each other, and draw up initiatives that benefit everyone. Until this happens, the state of California will be resigned to many more years of in-fighting, all while the general population continue to convey their wishes for legalization.
