With the proliferation of sports betting across much of the United States in recent years, California remains a holdout when it comes to legal wagering on athletic contests. While over 30 states have embraced regulated sportsbooks, either at physical locations or online, sports betting remains prohibited under California state law — for now.
The potential tax windfall from legalization has many in the state clamoring for change. Estimates peg the California sports betting market at around $4 billion in the annual handle, which could generate over $500 million in direct tax revenue for the state.
Add in the creation of new jobs, economic activity, and the undercutting of the unregulated offshore market, and the fiscal benefits promised by legal betting appear substantial.
Is Sports Betting In California Legal?
Sports Betting is not allowed in the State of California. At present; efforts to bring sports wagering out of the shadows in California have stalled. A proposed state constitutional amendment that would permit on-site sportsbooks at tribal casinos and racetracks qualified for the November 2022 ballot but was withdrawn by tribal groups who feared it would fail to garner sufficient public support.
Since then, the Coalition for Safe, Responsible Gaming – a consortium of 18 federally recognized tribes – has been working on a new sports betting ballot measure for 2024.
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The Pros And Cons
Key points of contention revolve around which entities could participate in the sports betting market and how revenues would be divided. Powerful tribal gaming interests want exclusivity over mobile and online betting.
Commercial gaming companies and professional sports franchises are pushing for open competition and the ability to obtain licenses. Debates over suitable tax rates and where funds would be allocated further cloud the issue.
While some maintain California isn’t missing out while wagering remains illegal, experts contend the status quo comes at a real cost. Consumers keen to bet migrate to offshore sites or illicit bookmakers. Potential state revenues go unrealized. Protections against problem gambling and underage betting are absent. Calls for pragmatic, regulated options are growing louder.
Right now, Californians can readily place wagers through offshore websites or apps with zero oversight and no consumer protections, and watchdog groups, lobbyists, and gambling industry reps are taking advantage of that by pushing their narratives and vantage points concerning the legalization of gambling in Sunny, liberal, ultra capitalistic California.
A regulated market would allow the state to enact strict licensing protocols, establish comprehensive problem gambling resources, and restrict sports betting participation by minors.
Though complex questions around structure and implementation remain, recent polling reveals clear public approval for legalized sports wagering in California. There’s data that indicates that lots of Californians would agree to making sports betting legal. Surveys of the general culture of the Californian demographic would indicate that this is a trend they’d back.
With citizens eager to see sports betting embrace the light of day, it appears only a matter of time before legislative efforts bear fruit in the Golden State. For advocates of responsible gaming, the solution ultimately lies in lawmakers crafting a flexible regulatory regime that serves the interests of all Californians.
Legal Hurdles
There are definitely challenges to overcome, but by following examples from states that got things right, California regulators can enact smart policies that provide safe, controlled sports betting options across the channels consumers demand, all while generating funds for vital state programs.
As more states successfully implement sports betting and reap the fiscal rewards, the pressure on California to catch up intensifies.
Bad Luck At The Ballot
While the next attempt at ballot-based legalization is still years away, and with the last proposition ballot to make sports betting legal failing to pass back in 2022, those within the business of sports betting are engaging in back-channel discussions continue amongst stakeholders seeking common ground.
With potential tax revenues sorely needed and public sentiment solidly in favor, the smart money seems to be on California joining the national sports betting wave sooner rather than later.
