California could vote in 2022 on whether to allow sports betting at tribal casinos and horse-racing tracks after an initiative to amend the state’s constitution and laws secured enough signatures to become eligible for the general election ballot.
Secretary of State Shirley Weber announced on Thursday that the initiative that includes sports betting had been signed by more than one million people and had become eligible to be included on the Nov. 8, 2022, ballot.
The measure is backed by Native American tribes in the state. If passed, it would allow federally recognized tribes in California to offer roulette, dice games and sports betting on their lands, “subject to compacts negotiated by the Governor and ratified by the Legislature,” according to a summary by the state’s attorney general.
There would also be on-site sports wagering allowed at privately-run horse-racing tracks in four specific counties under the initiative, and only for people 21 years or older. A 10 percent tax would be put in place on sports-betting profits generated by the tracks, with some revenue going to enforcement and problem-gambling programs.
Under the ballot measure, any marketing of sports betting to people under 21 would be banned. The initiative would allow private lawsuits to “enforce other gambling laws” as well, the summary notes, allowing residents to file a civil action in court to try to stop any violations.
An analysis of the proposed constitutional and statutory initiative by California's Legislative Analyst's Office found the measure would have an effect on the spending and revenues of both state and local governments, but just how big of one remains to be seen.
“For example, it is unclear what payments to state and/or local governments would be negotiated in tribal-state compacts in order for tribal casinos to offer sports wagering," the LAO review stated. "The measure’s fiscal impact would also depend on the extent to which members of the public choose to participate in sports wagering, as well as the frequency with which the new civil enforcement tool is used.”
A big opportunity
While a majority of California voters would need to support the ballot measure, it could open the door to sports betting in the biggest potential market in the United States. California's population is estimated to be nearly 40 million, and the West Coast state has a number of professional and college sports teams that draw considerable interest from fans.
In addition to its sports teams and fan base, California also has a sizable gambling industry, including more than 80 cardrooms, four horse-racing tracks and 65 tribal casinos as of early 2020, according to the LAO analysis. Currently, however, California law bans betting on sporting events.
The ballot measure could change that. The Secretary of State will certify the initiative as qualified for the November 2022 ballot on June 30, 2022, unless it is pulled by its proponents before then.
Yet the initiative would also introduce sports betting in a limited fashion in the state, which could prompt pushback from other interested parties. Any opposition already seems likely to include anti-gambling advocates and the state’s cardroom industry, which is currently cut out of the sports-betting initiative.
“This initiative does nothing to advance sports wagering, and instead expands the tribal casinos’ tax-free monopoly on gaming and rewards those operators for prioritizing their own wealth over public health and safety,” Kyle Kirkland, president of the California Gaming Association, told the Los Angeles Times.
