As the most populated state in the USA, California represents the largest domestic sports betting market but remains untapped. CA is gambling friendly, featuring horse race betting, lottery, casinos, and card rooms.
So, why is sports betting in California not a thing? Two propositions were presented to CA voters in 2022, both of which would have allowed for local sportsbooks to exist, but neither passed at the ballot box.
The propositions were competitive, with one granting exclusive control to the state’s tribes, and the other allowing domestic vendors to enter the market and apply for sportsbook licenses.
Monday morning quarterbacks claimed that the rush of competing advertisements for the propositions confused voters, and the oversaturation of the airwaves caused constituents to lose interest altogether.
While locals in CA have already weighed in, member organizations in the SBA (Sports Betting Alliance) believe that an alliance between themselves and the tribes will make the waters less muddy.
BetMGM, DraftKings, Fanatics, and FanDuel make up to four members of the SBA, and on Monday, their leaders spoke at the Indian Gaming Tradeshow & Convention in San Diego, suggesting that a partnership is a key part of the sports betting recipe in the Golden State.
SBA gave a presentation titled “The Power of Partnerships: Aligning with Established Gaming Brands.”
“I think a lot of people thought that after California [propositions] 26 and 27 that there would be no way that the East and West shall meet. But yet here we are, aren’t we?”
Victor Rocha- The Conference Chair of the Indian Gaming Tradeshow & Convention
The SBA is proposing the creation of an uber tribe in California that combines all 109 groups into a single unit for the purposes of sports betting revenue sharing.
The four domestic sportsbooks that comprise the SBA would control the sports betting market in the state, with a hefty percentage of the profits going directly to the combined tribes.
This would leave popular operators like Caesars, BetRivers, and Bet365 out of the mix.
Nothing can be presented to local voters until at least 2026, with the earliest launch date being 2027.
Until then, offshore sportsbook sites will continue to dominate the local sports betting market. Online sportsbooks that are located overseas are able to skirt local laws due to their international location.
The money spent at these overseas sports betting sites is not trackable by local governments, but estimates are as high as $2 billion annually.
Sources:
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