California Initiatives Offer Several Paths to Sports Betting

This year, California voters may have the opportunity to choose from several measures to legalize sports betting. Some offer a path for retail sports betting while others hope to use revenues to solve the epidemic of homelessness.

California Initiatives Offer Several Paths to Sports Betting

Competing proposals aimed at the November ballot offer several paths to California sports betting.

One measure that has already qualified for the ballot is proposed by a consortium of about 18 of California’s most powerful gaming tribes. It would only allow retail sports betting, and only at tribal casinos or racetracks.

Proponents of two other measures are still gathering signatures to qualify for November. Unlike the tribal proposal, both would allow mobile sports betting statewide. One is bankrolled by a group of sports betting operators, including FanDuel and DraftKings. Dubbed the California Solutions to Homelessness and Mental Health Act, it relies on homelessness being a hot button issue in the Golden State, which is “home” to 25 percent of the nation’s homeless. If passed by the voters, it would earmark 85 percent of tax revenue after expenses for the California Homelessness and Mental Health Fund (CHMHF). Proponents claim this would amount to $500 million a year.

The second mobile sports betting measure is backed by several California cities that host card clubs—which are locked out from participating in sports betting by the tribal proposal. It would set aside no specific percentage for the CHMHF.

A third mobile sports initiative, which hasn’t yet started to gather signatures, would set aside 10 percent of “sports wagering revenue” for CHMHF “if required by compact or regulations.”

Its most prominent tribal sponsor is the San Manuel Band of Mission Indians. Under this measure, tribes would also be able to add roulette and dice games to the Las Vegas-style gaming and slots they already offer.

It would amend the California constitution to provide a way for tribes to add sports betting to existing tribal-state gaming compacts or use a “model compact.” This would address the fact that sports gaming isn’t addressed by the 1988 Indian Gaming Regulatory Act (IGRA). It would earmark 15 percent of gross gaming revenue for a tribal fund and 10 percent for the CHMHF.