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California Moves Toward Legalizing Sports Betting

Fans celebrating during a sports event with betting activities in California.

News Summary

California is making a renewed push to legalize sports betting, with sports betting operators and tribal representatives exploring a collaborative framework. This initiative aims to create a governing body that ensures tribal authority while partnering with national operators. After failed attempts in 2022, there is optimism for a mutually acceptable plan by 2028, focusing on revenue-sharing and inclusivity. The Sports Betting Alliance has established a tribal advisory board to facilitate ongoing discussions, with the goal of providing Californians the ability to place bets legally in their state soon.

California is witnessing renewed efforts towards legalizing sports betting as sports betting operators and California tribes explore a potential collaboration after a divisive ballot fight in 2022. This initiative was unveiled at the Indian Gaming Tradeshow & Convention held in San Diego by representatives from the Sports Betting Alliance (SBA), which includes major operators like DraftKings and FanDuel.

The proposed framework aims to create a single governing body that would oversee online sports wagering across California. This governing entity is envisioned to uphold tribal authority while forming partnerships with national sports betting operators, establishing a mutually beneficial relationship between the two parties.

In California, tribal casinos stand as the only legal gambling venues, alongside the State Lottery, betting on horse races, and card rooms. All other forms of betting are prohibited, prompting many players to leave the state in search of non-tribal casinos and online platforms. The new proposal, therefore, hopes to address these unmet needs while keeping tribal interests at the forefront of this potential legalization.

Following a tumultuous attempt to legalize sports betting in 2022 that saw tribes and sports betting operators investing over $200 million into two conflicting propositions, there is increased motivation to find common ground. Proposition 27, which favored commercial operators without tribal oversight, was overwhelmingly rejected by 80% of voters. In contrast, Proposition 26, advocating for tribal-controlled betting, garnered less than 30% support from the electorate.

The SBA’s latest proposal seeks to allow various betting operators to compete under the watchful eye of the proposed governing body. This initiative has sparked renewed dialogue between sports betting operators and tribal casinos, with an acknowledgment that some tribes had previously considered similar operational models.

Despite these advancements, questions have emerged regarding the SBA proposal’s adherence to the Indian Gaming Regulatory Act. Scrutiny surrounding the revenue-sharing structure has also arisen, with tribal leaders emphasizing the need for equitable distribution of generated revenue. This concern is underscored by requests from tribes to secure a substantial share of the profits from sports betting operations.

In response to these developments, the SBA has established a tribal advisory board to ensure that tribal leadership is actively involved in conversations related to the legalization process. This move denotes a commitment to fostering inclusivity and collaboration between state operators and tribal governments.

Discussions among tribal governments are expected to continue, as stakeholders recognize that creating a mutually acceptable framework will require patience and time. In light of the complexities involved, tribal leaders have decided against pushing for sports betting initiatives on the ballot in 2026. Instead, they advocate for a more collaborative approach aimed at achieving consensus before potentially moving forward with proposals in 2028.

The events of 2023 mark an important moment in California’s ongoing dialogue regarding sports betting. As the interests of sports betting operators and tribal authorities align more closely, there exists a cautious optimism that their combined efforts may eventually lead to a comprehensive and legal sports betting framework within the state. In the face of both past failures and modern challenges, these discussions set the stage for a future where Californians may soon have the opportunity to place bets legally within their own state.