Whether you live in California or you are just a fan of sports betting in general, you may be aware of the back and forth surrounding the legalization of sports betting in the Golden State. Gambling has been a hot topic since 2018 when the Supreme Court struck down a 1992 federal law that banned commercial sports betting in most states.
Even though California has always been rather gambler-friendly, the conversation of legalizing sports betting has not taken flight just yet. Currently, the state prohibits all sorts of sports betting including baseball, hockey, football, and basketball.
Currently, gambling in California is limited to horse racing, charitable gaming, card rooms, the state lottery, and tribal casinos. The state has 69 native casinos, and they offer about two thousand table games and 70,000 slot machines.
Unexpected Twists in Betting Legislation
The Professional and Amateur Sports Protection Act of 1992 (also known as PASPA or the Bradley Act) was overturned, California wasn’t immediately expected to pursue the legalization of sports betting. However, according to information about sports betting at betting.us, this would change unexpectedly.
In 2019 the Joint Assembly and Senate Governmental Organization Committees met in the state capital to discuss sports betting. The goal was to get the opinion of experts about the state of sports betting and the possible effects of its legalization in California.
Unfortunately, this meeting did not involve the representatives of current California racetracks, card rooms, and tribal casinos. Entities and businesses which had great stakes in any gaming legislation and the financial strength to lobby either way on the issue.
Legal Obstacles and Log Jams
In order for sports betting to be legalized in California a two-thirds supermajority of votes in its favor is necessary. If the state legislature is not on the same page, this can be very difficult to achieve. The biggest challenge on the road to the legalization of sports betting comes from the tribal casinos seeking to protect their near-monopoly on gaming in the state.
These tribal casinos are currently looking to place a referendum on the ballot in 2022 to permit the opening of retail sportsbooks by native casinos exclusively. While the tribal proposal from the coalition of tribes may be the fastest way to legalize sports betting in the state, the referendum is sure to be opposed by private businesses, card rooms, and gaming companies looking to expand into California.
What May Happen After Legalization
If sports gambling is legalized, local sports fans including those of the Los Angeles Dodgers, Lakers, Rams, Kings, and Angels will be able to interact with their favorite teams in a number of different ways depending on the exact legislation.
While it’s possible that betting might only be allowed at tribal casinos which primarily exist on the outskirts of population centers in the state, online wagering may open up allowing fans and bettors to place wagers from their personal smartphones and tablets.
Economic Impacts of Legal Betting
One thing that is impossible to ignore and everyone seems to agree upon is the incredible economic impact of sports betting. California is the largest state in the USA and boasts over 35-million adult residents and 16-professional sports franchises.
New Jersey, which was the first state to legalize sports betting in 2018, has proven sports betting to be a consistent source of revenue for the state. This became even more evident during the COVID-19 crisis when, due to lockdowns, many people turned to online casinos offered by the state as entertainment outlets during lockdowns.
In New Jersey, online gaming has grown every month since being introduced, generating more than $870 million in revenue for the state in 2020. California is more than four times larger than New Jersey, and estimated revenue could be greater than $3-billion per year.
