California has been making efforts to legalize sports betting but we are yet to witness any tangible positive outcomes. The state is well-primed for a lucrative betting industry if only an effective regulatory framework was to be adopted.
Legislators, recently launched a third sports betting initiative, this year. This is a tribal-led sports betting ballot initiative that allows the incorporation of sportsbooks at tribal casinos.
There are effective state laws and regulations aimed at verifying the authenticity of sports betting in California. We are expecting that if the initiative was to become part of California’s gambling legal framework, operators within the state will heed to the provisions therein.
Support For the Initiative
The lobbyists behind the third betting initiative have already filed it with the Attorney General and it has managed to garner support from DraftKings and other leading betting operators.
California is known for its first and second betting initiatives. However, these two earlier initiatives did not meet the online requirements for approvals. The current initiative is therefore a polished version of the two previous proposals that’s more likely to make a successful tribal-ballot initiative.
This article checks on the possibilities of the third sport betting initiative beating its two predecessors and how some of the reputable online casinos in CA are reacting to it.
Requirements and provisions
The Third Sports Betting Initiative is expected to have gathered a winning number of signatures for statewide ballot qualification by November 2022.
To qualify the initiative under California law, the promoters of the bill will have to collect about one million valid signatures. The signatures are then verified by the county election officials and if the laid-out threshold was met, the Secretary of State qualifies the initiative for the ballot.
Eventually, the qualified initiative proceeds for popular ballot voting before California voters. Recent developments have shown sports betting is a promising revenue generator. However, this is only possible with effective regulatory policies in place.
The Third Sports Betting Initiative could become a reality in 2022, with major cities pushing for legalization through the California Sports Wagering and Consumer Protection Act. With the promoters having filed the Third Sports Betting Initiative a few days ago, signs are pointing for approval.
Backing The Third Sports Betting Initiative
In the quest to initiate the Third Sports Betting Initiative, and win the battle on California’s gambling market, the major gambling establishments in the state have joined the rally to have the initiative adopted.
The sportsbook-driven plan is a $100 million initiative that will see the rise of a successful gambling market in CA. This initiative is aimed at funding the homeless and supporting mental health patients in the state.
Among the top gambling establishments in support of the bill include DraftKings, BetMGM and the FanDuel. According to campaign manager Dana Williamson, the three organizers are planning to establish the initiative’s campaigning team. In a bid to uplift Tribal Communities, anyone operating online sports betting in the California marketplace is expected to partner with California tribes.
Native American tribes already donated $12 million to qualify for the new gambling initiative in an aim to have control over the new sports betting space.
On the other hand, card rooms, with a history of battling over tribal-based gambling, have spent over $450,000 to pass a rival proposition. The initiative, therefore, could open a third front battle for control and regulation of the gambling industry in California.
Revenue Distribution Proposals
The initiative proposes that about 85% of the total revenue collected should be directed towards helping the homeless and mental health patients. The other 15% of the total revenue should go to the tribal communities as per the proposals of the organizers. Initially, there was no initiative that had a clear and precise plan on revenues distribution.
Among the lobbyists tasked with ensuring the measures of the initiative reach the finish line are Williamson, who carries enough experience having served as Brown’s cabinet secretary, Kamal Harris, and San Francisco Mayor London Breed. It is therefore evident that the big names carry positive proposals towards the third Sports betting initiative.
The three separate proposals are potentially headed to the ballot. Lawmakers are expected to craft effective measures that could prompt the card rooms, the race tracks, the sport betting giants, and the tribes to withdraw their proposals. It is also worth noting that the different interest groups had tried their hands on their own versions of the initiative for years through the Legislature but failed.
California is a Golden State with unmatched potential for a significantly huge sports wagering industry. Therefore, there are many prospective gambling operators eyeing the California gambling market, especially now that the Third Sports Betting Initiative promises a lucrative opportunity.
Majorly, California is populous and thus presents a large market for gambling. In addition, many bettors are happy for the initiative as they are forced to travel across the border to nearby states to participate in sporting events. These factors among others have created a strong wave on the speculative market, which leading gambling operators are ready to fill.
The Expected Impact of the Third Sports Betting Initiative
In the event that the initiative succeeds, any operator will need to partner with retail casinos to get a license. The tribal coalition has unwavering resistance to any un-partnered sports betting establishment. However, this means that the market is only open to operators with deep-enough pockets to pay licensing fees and are ready to share the revenues with the tribe.
The journey towards legalization of the California sports betting is long and may take several months to materialize. When the journey comes to a completion, California will benefit significantly from revenue collected from the gambling market. With a population of close to 40 million, the revenue may be higher than that of top markets such as Nevada, New Jersey, and Pennsylvania.
However, it is difficult to state the amount of revenue that the government may earn upon legalizing the Third Sports Betting Initiative. The sports betting revenue is expected to accelerate upon legalization as a good portion of the population will certainly participate in the new local gambling market.
In addition, political factors may have a great influence on the third sport betting initiative. Gavin Newsom sheds light on bettors’ hope for the legalization of sports betting while on the other hand, the favorite candidate Larry Elder is conservative and is opposed to gambling. The election of either will have an impact on Third Sports Betting Initiative efforts.