California Rep. Adam Gray says the Golden State lost a lot of gold from the Super Bowl, and the fact that residents were not able to wager millions of dollars on the outcome, and the state wasn’t able to tax their wagers.
Gray told a local television station, “The choice is not, should we have sports wagering or not have sports wagering. We do have sports wagering. You could see tax revenue as high as a $100 million or $200 million a year to the state general fund if we authorize sports wagering.”
Although sports betting is not currently legal in the U.S. outside of four states that were exempted from the federal ban on such wagers. That federal law, Professional and Amateur Sports Protection Act (PAPSA) was passed in 1992.
But if the U.S. Supreme Court lifts that ban this summer, as many expect it will, Gray wants California to be ready.
“Many people are on online sites now, but their money is not protected,” Gray told the interviewer. “There’s no regulation, or accountability for those companies, so this will kind of bring it out of the shadows and have a legal regulated marketplace.”
Last summer Gray introduced a state constitutional amendment to legalize sports betting. It reads, “… if the federal Professional and Amateur Sports Protection Act (28 U.S.C. Sec. 3701, et seq.) is amended or repealed to allow sports wagering in California, the Legislature may authorize sports wagering.” Being an amendment to the state constitution it would require approval by two-thirds of the voters.
Some California gaming tribes favor sports betting, others worry that it might undermine their position of dominance and worry that it might be opened to other gaming providers, such as card clubs and racetracks.
The American Gaming Association, which represents all those interests, has been careful in how it lobbies for legalization.
As many as 19 other states are waiting expectantly for the opportunity to legalize sports betting and start collecting the taxes on it.
