Just When Will California Make Sports Betting Legal?
Since 2018 over 30 US states have made gambling legal but California isn’t one of them. With millions of dollars being raised from gambling tax revenue, why hasn’t California gone down the legalization route and will it happen anytime soon?
It was five years ago when a US Supreme Court Judge made a ruling that changed the US gambling industry forever. At that time the federal government had the final say on any decisions. States such as New Jersey had been campaigning hard for change but without success.
Then came the ruling that changed everything. It stated that the final decision on legalization could be taken by the individual state. Soon after Delaware and New Jersey made betting, particularly on sport legal. The total is over 30 now and it’s good news for those who gamble, betting companies and the tax receiving states.
There have of course been attempts to get sports betting legalized in California. Last November there were a couple of bills on the ballot that would have seen legalization move a step closer. However, both failed to get the necessary support and the long wait continues.
Californian tribes believe that it’s unlikely a solution to the problem will be found in 2023. Failure to do so is also likely to rule out legalization in 2024 too. Just why is this happening and what problems does not legalizing sports betting create for Californians?
Just because sports betting in California isn’t legal does not mean no one is doing it. VPNs can be used to play in other states or just travel to a state where sports betting is legal.
“Then there are the underground sites that attract many gamblers. This is a worrying situation because such sites are not licensed. That means there is no regulatory body and these sites can do just what they want”, said spokesperson of Agamble.com, a website about online casinos and legal gambling in the US.
Offers may not be anywhere near as attractive as they look and heaven forbid there ever be a dispute because consumer protection just isn’t in place.
The situation isn’t good for the state authorities either. Money being gambled in other states or being thrown in the direction of unregulated sites doesn’t provide any tax revenue for California. The sheer size of the state and the number of top sports teams and sporting events that take place could be bringing in huge amounts of tax revenue.
Legalizing sportsbooks, especially online, would greatly help the California economy. That’s what led New York to go down the legalization route. Their Governor wasn’t in favor of making sports betting legal until the pandemic came along and seriously hit their economy. Online sports betting has been hugely successful especially when the NFL and NBA seasons are in full flow.
Over $400 million was spent on the campaigning for the November 2022 ballot. How many more dollars will need to be spent before either sports betting is legalized in California or its supporters admit it’ll never happen? The latter is unlikely to happen so prepare for more campaigning in the future.
Those wanting to see sports betting legalized campaigned that the revenue received from taxation would be put to good use. It could help those who really need assistance including the homeless or suffering from mental health problems. That has been the case in other states but not yet in California.
The gambling industry is one that sees huge amounts being wagered and also big profits for the companies. That’s one of the reasons why there is no agreement with the tribes not keen at all on seeing their business profits being hit.
When a US state makes sports betting legal, it’s a long process between passing the law and launching the product. It’s not just the tax revenue that is received by states. There’s also the charges that can be made for issuing licenses and the subsequent renewals.
It won’t just be the tribes that make the applications. Companies such as DraftKings, BetMGM, Caesars Entertainment and FanDuel are waiting in the wings for the go ahead in states that legalize sports betting.
One of the options voted on last November legalized online sports betting was backed by the large nationwide gambling companies. The other would have seen sports betting take place in person at the casinos that are operated by the tribes plus the four legal horse racing tracks.
With over 40 million people in California, the state could become a goldmine for any company granted a license. A lot is at stake for those who stand to profit from the legalization of sports betting in the state. Until some form of compromise is found that satisfies both the tribes and major gambling companies, the wait for legalization looks like continuing.
