Although it’s unlikely that the California legislature will address sports betting during this legislative session, most Sacramento observers think it’s inevitable that it will take it up soon.
The state’s economy recently passed Great Britain’s to become the fifth largest in the world, and many residents already bet on sports in Nevada or in black market sites off -shore.
Since Britain is a comparable size economy, it is useful to note that in that country sports betting generates nearly $5 billion in revenue, more than $700 million in taxes and supports thousands of jobs.
Supporters of legalized sports betting in the Golden State argue that consumers will be better served by regulatory oversight that will protect consumers and problem gamblers, while assuring the integrity of the sports games the wagering depends on.
In a statement last week, the California Gaming Association said it “supports efforts to create a legal sports betting industry. For almost two decades, the CGA has represented the cardroom industry in California, which generates two billion dollars in economic activity, provides more than 23,000 well-paying jobs to Californians and provides critical tax support to dozens of communities across the state.”
The association represents the state’s 90 plus card rooms, which are arguing that they should get a piece of the action. “Tribal casinos, horseracing, sports leagues and associations, the fantasy sports industry and payment processors also all have a strong interest in a safe, transparent sports wagering industry. In addition, consumer protection groups, cities and counties, regulators, law enforcement and responsible gambling proponents all have vested interests in a legal sports betting industry. None of these groups benefit by having sports wagering remain underground without rules and referees,” said the association in its statement.
Noting that the infighting between tribes, cardrooms and racetracks have for 10 years prevented any action on online poker, the association state, “Sports betting offers a bigger, better prize than iPoker—for everyone—and with these higher stakes, the gaming industry needs to come together to ensure this opportunity is available for everyone in the state. Our constitution grants tribes the exclusive right to banked card games but does not provide anyone the right to conduct sports wagering.”
Notwithstanding that view, California’s gaming tribes represent an $8 billion industry, and it will probably have the last say on this issue—if it can speak with one voice.
Steve Stallings, chairman of California Nations Indian Gaming Association, indicated last week that tribes will fight to extend their monopoly to sports betting.
“California voters have, on numerous occasions, confirmed the exclusive right of California tribal governments to operate casino-style games,” Stallings told the Los Angeles Times. “Legalization of sports betting should not become a backdoor way to infringe upon exclusivity.”
Any agreement, such as one that Rep. Adam Gray is trying to craft together to offer as a referendum to amend the state constitution, would require a two-thirds supermajority of both chambers to send to the voters.
Nick Sortal of CDC Gaming Reports in his column last week noted that there is a direct correlation between the complexity of adopting a sports betting and tribal gaming.
He wrote, “In this new era, created by the U.S. Supreme Court’s ruling on May 14 that clears the way for sports betting, one thing is clear: the launch date for states with tribal gaming is going to be much later than those without. The reason is simple: With at least one additional party involved (more if there are multiple tribes), the negotiations become exponentially more difficult.”
National Indian Gaming Association Chairman Ernie Stevens Jr. told the Associated Press: “I don’t believe this is going to take the place of our slot machines, but it’s another amenity we can enjoy and people can have fun with. And we want to be able to move forward with the overall industry.”
Stevens and NIGA has been preparing members with listening sessions that go over internal regulations and negotiations of tribal state gaming compacts.
