California Inching Toward Improbable Legal Sports Betting Platform

Time is running out for California to legalize sports betting by 2024, but there remains hope that residents may be able to access top sports betting sites before the deadline.

On November 5, 2024, election day in the United States, supporters of a legal California sports betting platform are optimistic that voters will not only be choosing the next President but also deciding on the potential establishment of a legal sports wagering platform, both mobile and retail, for the state.

In 2024, the California Attorney General introduced two legal sports betting measures that may be included on the 2024 election ballot. Although there are challenges ahead, the AG’s summaries provide a path for supporters to gather the required 874,641 signatures to advance sports betting initiatives for the November ballot.

The ballot measures

The California Attorney General has approved Initiative 23-0030 Amendment 1 and Initiative 23-0031 to move forward to the signature-gathering phase. It is anticipated that both proposals will require 1 million signatures to be eligible for the November election.

Kasey Thompson, a self-proclaimed “tech bro,” is leading Initiative 23-0030 Amendment 1 in an effort to bridge the gap between supporters of legal sports betting in California and the Native American tribes, who not only reside in the state but also dominate the legalized gambling industry.

This would open the door for mobile sports betting, retail sports wagering, and online casino gaming, such as roulette and dice games, all to be conducted on tribal lands.

According to Initiative 23-0030 Amendment 1, tribes are required to pay 1% of their revenues to the state for regulatory costs. Additionally, 25% of revenues must be allocated to tribes in the state that choose not to partake in a legal gambling platform.

In his summary, the Attorney General mentioned the potential for increased state revenues amounting to tens of millions of dollars annually, contingent upon the implementation and legal interpretation of the measure.

Initiative 23-0031

Initiative 23-0031, a proposal connected to Thompson’s plan, is much briefer in explanation. It also supports online sports betting on tribal lands, without delving into the potential financial advantages for the state.

It is stated that there will be no immediate fiscal impact on state and local governments if the Legislature chooses to permit sports wagering. However, if sports wagering is authorized, there may be potential fluctuations in government costs and revenues based on specific regulatory measures and other factors.

Initiative 23-0031 is considered a contingency option, as Thompson has indicated that supporters would only proceed with one of the two suggestions.

Obstacles

The California Nations Indian Gaming Association strongly opposes the introduction of a legal sports betting platform in California. The Association has successfully prevented any attempts to include the sports betting question on the 2022 ballot and has indicated that it will continue to do so in 2024.

Propositions 26 and 27 of 2022 ultimately flopped in the polls, receiving less than 20% support each, despite a whopping $600 million investment in promoting their agendas.

Last year, CNIGA Chairman James Siva made a statement regarding two legal sports betting proposals that could potentially alter the legal sports betting scene in California.

He said the sponsors of these initiatives handled the entire effort poorly, and it is difficult not to feel offended when hearing them speak. He sees this as another attempt by external forces to divide and conquer Indian tribes, and is determined not to let history repeat itself.

Wording presents a problem too

The wording of the two optimistic legal sports betting proposals for California may present a challenge for supporters, as it is perceived as unclear and complex not only for those endorsing the plans, but also for the voting public who will ultimately determine the future of legal sports betting in the state.

Brendan Bussmann, a consultant with Las Vegas-based firm B Global Advisors, stated that the description is unclear and confusing, and expressed doubt that voters would be able to understand its purpose.

What’s next?

The California AG’s approval has initiated the signature-gathering process. Thompson has stated that his group has hired the top signature-gathering company in the state to complete the petition process. He has personally pledged $25 million towards this effort.

Legal sports betting advocates in California have until June to gather the required 874,641 signatures to meet the minimum goal. This gives them just six months to reach their target.

Thompson’s team faces the challenge of gaining support from the native American tribes in California within a limited timeframe. It will be a difficult task.

The tribes sent a letter to Thompson in December, expressing their strong opposition to the offensive proposals presented as tribal initiatives. They reminded Thompson of the support from over half of California tribal nations and urged him to honor his word by promptly dropping the proposals.

Without tribal support, the measure may fail to make any significant progress.