As the saying goes, if at first you don’t succeed, try, try again. And so it is with legal sports betting in the great state of California, the biggest untapped market in the U.S. for authorized event wagering.
Two statewide ballot measures were officially proposed late last week, aiming to enable a limited form of California sports betting.
One measure would amend the California constitution to allow the governor to negotiate gaming compacts with Native American tribes that include the ability to open retail and online sports betting sites. The other would allow for the same and also amend the constitution to prohibit anyone who is not a federally recognized tribe from offering sports betting.
California residents would have to be 21 or older to wager under the proposed constitutional amendments. Online sportsbooks could offer professional, college, and certain amateur events to bettors, but not horse racing.
“It is estimated that illegal on-line gambling operators are raking in billions of dollars of illegal wagers and reaping millions in untaxed profits,” one of the proposed measure's “declaration of purpose” says. “Because this illegal activity is unregulated, there are no protections for consumers, including children who have easy access to such activity on their phone. In addition, such illegal gambling threatens the continued viability of lawful Indian gaming. California voters desire to reestablish and extend control over such gambling and protect lawful Indian gaming now and into the future.”
A few hurdles to clear
The public can now provide feedback on the two proposed measures during a 30-day comment period. After that period, which runs through Nov. 27, the state’s 2024 initiative handbook notes that the attorney general's office will prepare a circulating title and official summary of the proposed ballot measure. The state legislature can hold public hearings on the initiative but can't amend it or stop it from being put to voters.
It will eventually be up to the ballot measure's backers to circulate their petitions and collect signatures to get the initiative on the ballot. The number of signatures needed must be equal to at least 8% of votes cast in the previous gubernatorial election, which was 874,641.
If enough valid signatures are collected — and it qualifies at least 131 days before the next statewide election — the measure can appear on the ballot in November 2024. However, based on the last attempt to legalize sports betting in California that way, this time around looks like a long shot, at least at the outset.
Two pro-sports betting propositions were defeated in 2022, even after their proponents raised tens of millions of dollars to fund their efforts. The online sports betting ballot measure was thumped the hardest, receiving less than 17% of the vote.
This thing is so dead. Kasey Thompson & Ryan Tyler Walz are morons. You heard it here first. https://t.co/vQL8cDE9cs
— Victor Rocha (@VictorRocha1) October 28, 2023
Early feedback from the tribes, who fought hard to sink online sports betting the last time around, is not ideal for its passage.
Who exactly is backing the two proposed measures is still a bit murky. Nevertheless, the California Nations Indian Gaming Association (CNIGA), which is made up of 52 federally recognized tribal governments and associate members, said it was “deeply disappointed” the sponsors of the two proposed initiatives did not first reach out to the group.
“Instead, CNIGA and our member tribes were alerted to their existence when they were filed with the Attorney General today,” the association said in a statement. “Decisions driving the future of tribal governments should be made by tribal governments. 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.”
