CALIFORNIA SPORTS BETTING
and the well-regulated and operated mobile and online gaming industry. The multiple million-dollar advertising campaigns of Propositions 26 and 27 sent a not-so-subtle message to California voters – the proponents of both Propositions were focused on self-interest, not consumer interest. The attack ads, the negativity and the complete failure to educate voters properly on the way sports betting works doomed both Propositions. It was clear that both Propositions opposed an inclusive broad based sports betting industry structure that benefitted all traditional regulated gaming interests, consumer demands and taxpayer and state and local
licensed, well-regulated mobile and online gaming companies of various sizes that are able to demonstrate competence in the mobile and online gaming industry and effectively promote healthy competition. Healthy competition is in the best interest of California’s consumers. California has a unique opportunity to have a highly regulated sports betting industry with the best sports betting operators in the world. The main obstacle standing in the way is the need to bring together all relevant gaming industry interests in a manner that facilitates the development of a sports betting bill
that gives California’s consumers the sports betting options and venues that they want. That means a bill that provides for both in person brick and mortar and mobile and online sports betting venues. Why? Because some consumers want the ambiance of brick-and-mortar sports betting, some consumers prefer the convenience of mobile and online sports betting and some consumers live in areas where the only practical legal sports betting is mobile and online sports betting. In order for sports betting to become legal in California, the competing gaming interests (the tribal casinos, cardrooms, horse racetracks and mobile and online gaming operators) need to agree collectively upon a sports betting structure that encompasses the tribal casinos,
government interests. There was no comprehensive plan in which all these interests received a substantial benefit. It is submitted that the voters understood this and accordingly turned thumbs down on both Propositions. The “winners” in this whole process to date are the consumers, taxpayers, voters, cardrooms, and small and medium sports book operators that would have been artificially excluded under Proposition 27 by a US$100 million entry fee included in Proposition 27, as well as state and local government. The “losers” are the proponents of self-interest. The losers should understand that the sympathetic voter that passed the Tribal Government Gaming and Economic Self Sufficiency Act
CALIFORNIA The Golden State at a Glance: 39m $3.6tr
POPULATION MAKING CALIFORNIA THE US’S MOST POPULOUS STATE SIZE OF THE LOCAL ECONOMY REPRESENTING 17% OF TOTAL US GDP
$84k $3bn
MEDIAN ANNUAL HOUSEHOLD INCOME
SIZE OF POTENTIAL SPORTS BETTING MARKET
(Proposition 5) in 1998 may not view the issues presented by the Tribes then in the same way today. The Tribes have exclusivity over casino style gaming in California and have constructed billion-dollar casinos in California. The income generated by the exclusivity of these casinos has enabled the Tribes to become a powerful political force in California. However, the Tribes do not have an exclusive right to sports betting. Sports betting is an open opportunity for all elements of the legal gaming industry. The opportunities presented by a competitive sports betting marketplace are tremendous for California’s consumers, taxpayers and state and local governments if properly established and implemented by an inclusive, broad based sports betting structure, This is a structure that encourages inclusion of a number of experienced
cardrooms, horse racetracks and mobile and online gaming operators. That structure must contain a sound regulatory and licensing format that encourages competition and appropriate access to all elements of the regulated gaming industry consistent with gaming consumer demands and interests, including responsible gaming protections. In addition, such a structure must acknowledge, preserve and continue to encourage support of local government costs and services to the extent permitted by applicable law. Charting a path to a brighter future The drafters of future sports betting bills should look to jurisdictions that have successfully implemented the various
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IMGL MAGAZINE | JANUARY 2023
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