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California Tribes File Lawsuit Over Sports Betting Proposal

Tribes Were Collecting Signatures For Their Own Sports Betting Proposal Before Coronavirus Stopped Them In Their Tracks

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A lawsuit was filed Tuesday against the state of California by numerous Native American tribes that could hamper the progress of the sports betting bill making its way through the legislature.

The Coalition to Authorize Regulated Sports Wagering, a group that represents more than 25 tribal nation, filed the lawsuit just a few days after the California Sports Wagering and Protection Act passed a Senate committee by a 9-3 vote, according to a report from the Los Angeles Times.

The Sen. Bill Dodd-sponsored bill would allow for a constitutional amendment to allow sports betting in the Golden State and give voters the final say through a statewide ballot referendum this November.

The tribes, however, already started that process before the COVID-19 pandemic hit the United States in mid-March.

The coalition began collecting the nearly 1 million signatures needed to put the issue on the ballot in November but were forced to stop after the spread of coronavirus forced shelter-in-place orders all over the state. The virus was clearly a factor in the tribes failing to gather the signatures needed to move forward with the effort.

The lawsuit asks for a 90-day extension on the signature-gathering process, which was set to expire by June 25. According to state law, groups seeking a ballot measure have 180 days to get the required signatures.

When Gov. Gavin Newsom shut down most economic activity in the state, the tribes had spent $7 million on the effort and collected 971,373 of the 997,139 signatures needed to get the issue in front of the voters.

With their effort, the tribes are doing their best to get a bigger piece of the California gambling market, as opposed to what they consider a raw deal from Dodd’s legislation.

In the proposed legislation, tribes would be granted rights to sports betting and would also gain the ability to offer games like craps and roulette, but would share rights to house-backed card games like blackjack with commercial cardrooms in the state that are only allowed to spread poker.

Cardrooms have found loopholes in legislation that allows them to spread the games currently, which tribes have contended breaks the current agreement with the state.

If their sports betting proposal gained the necessary signature requirements and passed through a statewide referendum, those tribes would keep exclusivity on all house-backed games, while still gaining rights to offer sports betting.