Eighteen California gaming tribes are pushing to certify a ballot measure to amend the Golden State’s constitution to allow sports betting by tribes and racetracks—but not cardrooms. The tribes have until June to qualify the “California Sports Wagering Regulation and Unlawful Gambling Enforcement Act,” for the 2020 November ballot.
The tribes November 13 announced an alliance to push the measure which allows sports betting on professional sports. But it also makes a prudent, cautious political appeal for those who view sports betting suspiciously by banning wagers on college sports events. It also strays on the side of caution by not allowing mobile sports betting, something many gaming tribes fear will draw feet on the ground from their brick and mortar operations.
Qualifying a statewide referendum in a state as huge and populous as California is a daunting prospect, even for wealthy gaming tribes.
One wrinkle is that by deliberately trying to shut out their bitter rivals the card clubs, the tribes virtually invite a competing ballot measure that would muddy the waters and possibly confuse voters.
Several months ago, a political consultant who may have been funded by the card clubs, tested the political waters by filing for a card club referendum called “Gaming Fairness and Accountability Act” that didn’t draw any interest (i.e. big donations) and so isn’t currently active. Card clubs might push a separate referendum that would allow them to participate, or perhaps act as spoilers by campaigning against the tribal measure.
State Rep. Adam Gray, who has been the most active state legislator to push gaming, especially online gaming, over the years, has again filed a constitutional amendment that would “authorize the Legislature by statute to authorize and provide for the regulation of sports wagering.” He is not seen as likely to drop his proposal, despite the tribal efforts. His proposal would also aim at the November 2020 ballot. So that raises to three the number of possible competing measures.
A ballot with competing measures could lead to no measure passing. However, only allowing brick and mortar participation could hobble California’s participation as a major player in sports betting. New Jersey’s experience demonstrates that online sports betting is by far the largest source of income. If Golden State bettors can’t make mobile bets, they are likely to continue to make mobile wagers other ways, including the black market.
The process for qualifying a ballot measure is as follows: The tribes submitted a request to circulate the title and summary of their measure on November 13 and the Attorney General posted the text on its website for a 30-day public comment period.
The state’s Department of Finance and Legislative Analyst has 50 days from the filing to create a financial analysis.
The Attorney General’s office has 15 days after that to provide a circulating title and analysis to the Secretary of State.
Following a typical path for a measure, the tribes would be able to begin gathering signatures by January 20. That will give them something less than the 180 days recommended for gathering the necessary 997,139 signatures. The deadline is June 25, since the law requires that an initiative be certified 131 days before the November 3 election.
