New California Legal Sports Betting Proposals Likely Dead on Arrival

The push for legal sports betting legalization and introducing our best sportsbooks in California took another hit Friday with the release of two new ballot initiative proposals. They weren't the first attempts to legalize sports betting in the state, and they likely won't be the last.

The major problem with the proposals from last week is that those in control of the legal gaming industry and California sports betting were not consulted. The California Nations Indian Gaming Association owns a virtual monopoly on the gambling scene in the state and was said to be “deeply disappointed” by the lack of consultation they got before the release of the two new plans. 

“While the sponsors of these initiatives may believe they know what is best for tribes, we encourage them to engage with Indian Country and ask, rather than dictate,” a statement from the California Nations Indian Gaming Association read.

The measures

Both of Friday's ideas to expedite the process of sports betting legalization for California involve amending the state constitution. Both still heavily involve the state's Native American tribes, although each would be unique in the angle they would take to reach their ultimate goal. 

Each proposal plans to use a reasonable hub-and-spoke model in which servers for mobile sports betting would be on tribal lands. This is similar to how the Seminole Tribe in Florida has justified its state gaming monopoly and continued attempts at launching a mobile legal sports betting platform there.

But, as mentioned, the tribes were not consulted about either of the plans presented Friday.

One constitutional amendment proposed would see the Governor being allowed to negotiate gaming compacts with the state's tribes directly to launch retail and mobile sports betting in the state, a path to seeing our best sports betting sites become available. Another measure prohibits any entity not considered a federally recognized tribe from launching legal sports betting in the state.

What’s next?

The two measures will now simmer as the public’s window to comment on the two will be open for 30 days. After that, there can be public hearings on the proposals and an attempt by the proponents of the two plans to gain enough signatures for their initiative to appear on the 2024 election ballot.

Eight percent of votes cast in the last California gubernatorial election, or just under 875,000 signatures, will be needed to put the initiatives before voters in the next election. Those signatures must be gathered and submitted no less than 131 days before the election.

Such measures have been attempted in the past and failed to make it to the California election ballot.

At stake

California remains the biggest unrealized prize in the American legal sports betting industry. It remains one of the most liberal states in the country, and yet, legal sports betting is still far from becoming a reality.

Chris Grove, managing director for Eilers and Krejcik Gaming, said, “California is easily the largest prize in the U.S. sports betting market.” BetMGM's management team touted the Golden State as “one of the most important betting markets in the world.” 

California has the biggest single-state population in America, with 40 million residents. It is home to 15 professional sports teams and one of the biggest tourism industries in the country. 

Translation — California is ripe for a long-overdue lucrative and all-encompassing legal sports betting platform.

Conclusion

No California legal sports betting initiative is going to pass without the unwavering support of the state's Native American tribes. The state's 70-plus tribes have held a long-lasting virtual monopoly over the state's gambling industry and aren't likely to give it up anytime soon.

The tribes are in control of the potential California legal sports betting push. Not having them involved in the new proposals was a serious misstep by the plans' backers.

“Decisions driving the future of tribal governments should be made by tribal governments,” the California Nations Indian Gaming Association said in a statement.

So, it looks like the latest push to legalize sports betting in California is likely dead on arrival. It’s back to a familiar square one in California with no resolution in plain sight.