California, known for its major sports franchises and passionate fanbase, has been at the center of debates about the legalization of sports betting. While other states have embraced the industry and are reaping the benefits of tax revenue and a regulated marketplace, California has yet to legalize sports betting fully. As 2024 progresses, understanding the current landscape, the ongoing efforts for legalization, and what this means for Californians who are eager to bet is essential. In this article, we will cover everything you need to know about sports betting in California, from its legal status to potential platforms and what the future might hold.
The Current Legal Status of Sports Betting in California
As of 2024, sports betting remains illegal in California. Despite the growing interest and widespread public support for legalizing sports betting, the state has not yet implemented a framework for regulated sports wagering. The primary reason for this is that while sports betting is legal in several other U.S. states following the 2018 Supreme Court decision that overturned the Professional and Amateur Sports Protection Act (PASPA), California’s unique legal and political environment has slowed the process.
Under PASPA, which was in effect from 1992 until its repeal, states were prohibited from offering legal sports betting. The Supreme Court’s decision in 2018 allowed individual states to decide whether or not they wanted to legalize sports betting. Many states quickly embraced the decision, seeing it as an opportunity to boost tax revenues, but California has faced significant hurdles. The California Tribal Nations, which run many of the state’s casinos, have expressed concerns about the fairness of any proposed betting measures, especially regarding the revenue distribution and the control of the market.
Efforts Toward Legalization: Propositions and Initiatives
While the state has not yet legalized sports betting, several propositions have been introduced in recent years to change the law. Two of the most significant efforts occurred during the 2022 election.
Proposition 27: Online Sports Betting
Proposition 27 sought to legalize online sports betting in California, allowing major sportsbooks like DraftKings, FanDuel, and BetMGM to offer their services to residents. The initiative aimed to provide a regulated market that would generate revenue for the state, which could be used for various public programs, including homelessness services. However, the measure faced strong opposition, especially from Native American tribes, who expressed concerns that the measure would harm their casinos’ operations and sovereignty.
In the 2022 election, Proposition 27 was rejected by a wide margin, with more than 70% of voters opposing it. The main issue was the belief that the initiative favored large, out-of-state companies over local tribes and that it wouldn’t benefit Californians as much as proponents claimed.
Proposition 26: In-Person Sports Betting
Alongside Proposition 27, Proposition 26 aimed to legalize in-person sports betting at tribal casinos and horse racing tracks. This proposition received strong support from the tribes but still failed to gain enough traction with voters. While it would have created a framework for land-based sports betting, it did not offer the expanded access that online betting advocates were pushing for.
Ultimately, Proposition 26 was also rejected, leaving California’s sports betting future uncertain. These two failed propositions in 2022 have set the stage for further negotiations and legislative efforts, but for now, sports betting remains illegal in California.
Current Legal Betting Options in California
Even though sports betting is not yet legal, there are still legal gambling options available to California residents.
Horse Racing
California has a rich tradition of horse racing, and betting on horse races is one of the few legal ways for residents to wager on sports. California’s racetracks, such as Santa Anita Park, Del Mar Racetrack, and Golden Gate Fields, host regular horse racing events where individuals can legally place bets. Moreover, online platforms like TVG and TwinSpires allow California residents to place bets on horse races taking place across the country.
The California Horse Racing Board (CHRB) regulates the horse racing industry, ensuring a safe and legal environment for bettors. As a result, horse racing remains the most widely accepted form of legal sports betting in the state.
Tribal Casinos and Card Rooms
In addition to horse racing, tribal casinos and card rooms offer various gambling options like slots, poker, and table games. However, it’s important to note that these establishments do not offer sports betting, as it is still prohibited under state law. While tribal casinos can operate a wide range of gaming options, sports wagering is not included, and any change to this would require new legislation or a ballot measure.
What Are the Next Steps for Sports Betting in California?
Despite the setbacks in 2022, discussions around sports betting in California are ongoing. Proponents argue that legalizing sports betting could bring significant economic benefits, including generating tax revenue that could be allocated to public programs like education and homelessness initiatives. Moreover, Californians are already placing bets on sports through illegal offshore sportsbooks, making the need for a regulated market even more pressing.
Future Legislative Efforts
Many experts believe that online sports betting will eventually be legalized in California, given the growing demand and the state’s massive sports market. The state legislature could introduce new sports betting bills in the coming years, and there is a chance that a compromise could be reached between stakeholders, such as tribal casinos, sportsbooks, and legislators. As the public’s support for legalization continues to grow, lawmakers will likely face increasing pressure to pass a bill that satisfies all parties involved.
The Role of Native American Tribes
A key factor in the future of sports betting in California is the influence of the state’s Native American tribes, which operate a large number of the state’s casinos. Many tribes believe that sports betting should be confined to their casinos, while others advocate for a more inclusive approach, such as allowing online sportsbooks to operate in the state. Moving forward, any legislation that would legalize sports betting will likely need to address tribal concerns, ensuring that they benefit from the new industry.
Revenue Allocation and Public Opinion
For any proposed sports betting legislation to succeed in California, there will likely be a focus on how the revenue generated from sports wagers will be used. Many advocates argue that the funds should be used to address California’s most pressing issues, such as homelessness, mental health services, and education. Additionally, the public’s support for legalized sports betting is likely to play a significant role in shaping the legislative process.
Conclusion
As of 2024, sports betting remains illegal in California, but the debate surrounding its legalization is far from over. The state has seen significant efforts to introduce legal sports betting, with propositions like Proposition 27 and Proposition 26 in 2022 failing to gain voter approval. However, with the growing demand for a regulated market, the potential for tax revenue, and the significant influence of tribal casinos, California is likely to see new efforts in the coming years to legalize sports betting.
In the meantime, residents can engage in horse racing betting, which remains legal, and continue to watch the legislative landscape closely. Whether California will ultimately join the ranks of states with legal sports betting will depend on future negotiations, the interests of key stakeholders, and the will of the voters.
