A successful petition drive backed by 18 of California’s Native American tribes will mean that voters will get to weigh in on legalizing sports betting in the Golden State—controlled by the tribes, of course. The election will take place in 2022, according to the California Secretary of State Shirley N. Weber. There was a possibility that the vote could be held this year concurrent with a recall election for Governor Gavin Newsome, but this decision will give tribes—and their opposition—more time to make their cases.
With approval of the referendum, sports betting would become legal at state tribal casinos and racetracks, but not at the more than 100 card rooms. The campaign will be long and expensive, with tribes and card rooms pouring millions into the effort. The tribes gathered 1.4 million signatures to win the ballot position.
Speaking for the Coalition to Authorize Regulated Sports Wagering, Pechanga Chairman Marc Macarro said, “This is an important step toward giving Californians the opportunity to participate in sports wagering while also establishing safeguards and protections against underage gambling.”
Card rooms formed their own group, No on the Gambling Power Grab, with a reported million dollar war chest, and will fervently oppose the referendum.
“This initiative does nothing to advance sports wagering, and instead expands the tribal casinos’ tax-free monopoly on gaming and rewards those operators for prioritizing their own wealth over public health and safety,” said Kyle Kirkland, president of the California Gaming Association.
The tribes and the card rooms are longtime adversaries, with lots of battles over the years, including attempts to shut down “banked” card games that skirt the law by having a third party finance the games. The card rooms have resisted all attempts by the tribes to expand gaming on the reservation—all for naught. In 2008, the card clubs lost a battle to expand tribal gaming in a campaign that costs in excess of $150 million.
The coming battle will be of epic proportions. California will clearly be the nation’s largest market, with multiple professional teams in the state—five Major League Baseball franchises, five NBA teams, three NFL organizations and the same number of NHL teams, not to mention several high profile universities, although the measure would prohibit betting on events where California colleges are participating. The market is estimated at $1 billion, even though there is no provision in the proposal for mobile wagering. All bets must be placed in person at the state’s 63 tribal casinos and 14 racetracks.
Adding the racetracks to the list of legal betting locations was strategic for the tribes. Justin Fanslau, a spokesman for the tracks, said his industry provide thousands of jobs, protects the environment, family farms and small businesses. He says the initiative makes “perfect sense” giving the tribes and the tracks exclusivity over sports betting.
