Sports Betting Legalization Efforts Unveiled In CaliforniaTribes Express Opposition To New Proposals |
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After recent failed efforts at legalizing sports betting in California, the Attorney General’s office recently unveiled two new proposals that backers hope to get on the November ballot for voters to decide on.
With a population of 39 million, California offers an enticing market for the industry, especially for online and mobile wagering which account for more than 80% of all wagers placed in some legalized states.
Both proposals involve tying wagering to the state’s tribal gaming operators, despite those same tribes opposing the plans.
“The entire approach has been error from the very beginning,” California Nations Indian Gaming Association Chair James Siva said in November. “The approach of essentially holding tribes’ feet to the fire — you’re either going to get on board with this, or we’re going to do it — that’s never going to work with us.”
Details On The Proposals
Despite those misgivings, Kasey Thompson remains determined to bring sports betting to the Golden State, having started promoting his vision in the state in 2023. The longtime gaming industry veteran and founder of All In magazine believes the tribes should be a major part of the industry.
SBC Americas notes that the first measure would “pave the way for the state to agree gaming compacts with the tribes to legalize online sports wagering statewide, along with in-person sports wagering, roulette, and dice games on tribal lands.”
To operate, the state would negotiate compacts with interested tribes, similar to that seen recently in Florida – although that monopoly has faced significant legal opposition and is now under consideration by the Florida Supreme Court. The U.S. Supreme Court has also shown interest in studying the issue in regards to the Constitution’s “equal protection” clause.
Plans call for the tribes to send 25% of profits to non-participating tribes and up to 1% to the state. The Attorney General’s office noted that the plan would provide “increased state revenues that could reach into the tens of millions of dollars annually, depending on how the measure is implemented and legally interpreted.”
This comes at a time when the state is facing a budget shortfall of $68 billion in 2024-25. The second proposal offers fewer details and allows tribes to provide online wagering on tribal lands. Backers have until April to gather 870,000 signatures to see the initiatives put on the November ballot. Thompson believes the initiatives could be a financial windfall for tribes.
“People just think, ‘This is too good to be true,’” Thompson told Politico. “We knew we could make this happen and come up with a solution for the tribes.”
Pushback On The Plan
So far, tribes have been critical of the initiatives and not being part of the planning process. Some tribal leaders feel they have been dictated to by Thompson and his team, and question his motives.
Whether that matters now will depend on California voters. If an initiative is eventually approved, tribes could then decide whether to move ahead with sports betting or not.
The state has seen some interesting dynamics involving the issue with backers trying to thread a needle involving the tribes as well as the state’s horse racing and card room industries. In 2022, however, voters rejected sports betting initiatives on the ballot. Gov. Gavin Newsome (D) has expressed opposition to online sports wagering as well.
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