New California Legal Sports Betting Proposals Likely Dead on Arrival

The effort to legalize sports betting in California and promote our top sportsbooks faced setbacks on Friday with the unveiling of two new ballot initiatives. While these proposals were not the first of their kind in the state, they are unlikely to be the final attempts at legalization.

The main issue with last week’s proposals is that the California Nations Indian Gaming Association, which holds a dominant position in the state’s gambling industry, was not consulted before the release of the two new plans for legal gaming and sports betting in California. As a result, they expressed deep disappointment over the lack of consultation with key stakeholders in the industry.

The California Nations Indian Gaming Association stated that while the sponsors of these initiatives may think they know what is best for tribes, they should engage with Indian Country and ask for input instead of dictating decisions.

The measures

Both of Friday’s proposals for expediting the legalization of sports betting in California require amendments to the state constitution. Despite the involvement of Native American tribes in both plans, each proposal offers a distinct approach towards achieving the same end goal.

Both proposals aim to implement a hub-and-spoke model that will place servers for mobile sports betting on tribal lands. This strategy draws parallels to the Seminole Tribe in Florida, which has used this model to maintain a gaming monopoly in the state and to pursue the launch of a legal mobile sports betting platform.

However, it should be noted that the tribes were not consulted regarding either of the plans that were presented on Friday.

A proposed constitutional amendment would allow the Governor to negotiate gaming compacts with the state’s tribes in order to introduce retail and mobile sports betting, potentially opening up access to top sports betting sites. Additionally, a separate measure would prevent non-federally recognized tribes from participating in legal sports betting within the state.

What’s next?

The public will have 30 days to comment on the two measures before they are finalized. Following the comment period, there will be public hearings to discuss the proposals and proponents will work to gather enough signatures to get their initiative on the 2024 election ballot.

To put initiatives before voters in the next election, just under 875,000 signatures, or eight percent of votes cast in the last California gubernatorial election, must be gathered and submitted at least 131 days before the election.

Previous attempts to implement such measures have been unsuccessful in reaching the California election ballot.

At stake

Despite being one of the most liberal states in the country, California continues to be the largest untapped market in the American legal sports betting industry. The potential for legal sports betting in the state has yet to be realized.

According to Chris Grove, managing director at Eilers and Krejcik Gaming, California represents the biggest opportunity in the U.S. sports betting market. The management team at BetMGM also emphasized the significance of the Golden State, calling it one of the most crucial betting markets globally.

With a population of 40 million residents, California holds the title of having the largest single-state population in America. Additionally, the state is home to 15 professional sports teams and boasts one of the largest tourism industries in the country.

Translation: California is ready for a profitable and comprehensive legal sports betting platform that is long overdue.

Conclusion

Without the steadfast backing of California’s Native American tribes, no sports betting initiative in the state will be successful. With over 70 tribes holding a strong grip on the gambling industry, they are unlikely to relinquish their control anytime soon.

The tribes hold the reins in the potential California legal sports betting push. Excluding them from the new proposals was a significant mistake by the supporters of the plans.

The California Nations Indian Gaming Association stated that tribal governments should be the ones making decisions that will shape their future.

It appears that the recent effort to legalize sports betting in California has failed, leaving the state back at square one with no clear resolution in sight.