CALIFORNIA SPORTS BETTING
components of broad based sports betting structures. New Jersey has implemented both brick and mortar-based sports betting and mobile and online sports betting. Michigan has successfully implemented sports betting at both its three Detroit casinos and its many tribal casinos, including mobile and online sports betting through the auspices of these casinos, which in turn have partnered with seasoned well-regulated mobile and online sports betting companies. In the states where sports betting is succeeding, the regulatory structures eliminate artificial barriers to competition and include rational fee and regulatory structures that encourage operators to do business in the state while also protecting consumers with strong age and location verification protection systems and implementation of responsible gaming protections. Moreover, they recognize the variety of ownership structures prevalent in the industry today, including licensing structures that take into account the licensing of gaming businesses, suppliers and individuals on a multi- jurisdictional basis. This includes the use of transactional waivers for sports betting operators and suppliers where appropriate to enhance the competitive environment. Any California sports betting proposals put forth in the future should incorporate these elements in California’s sport betting structure. In addition, the sports betting industry needs to educate the consumer public that mobile and online sports betting is a successful, highly regulated gaming format in many gaming jurisdictions. Mobile and online sports betting systems are certified by the best gaming technology certification companies in the world, including GLI and BMM. This includes geo location and age verification technology, which is standard in the mobile and online gaming infrastructure. Responsible gaming goes hand in hand with gambling and is a key area of support for the consumer who may have a gambling problem. The sports betting operators in the United States are all well-regulated companies that are very sensitive to the needs of the consumer and the need for investment into responsible gaming programs.
In this regard, the operators are required to have very effective compliance programs to detect and deter criminal activity such as money laundering. The gaming regulators in turn oversee and enforce strict compliance with gaming regulations by the operators. These are factual messages that need to be communicated effectively to the consumer. Sports betting will eventually become legal in California. The timing of it will depend upon the ability of California’s current gaming interests to set aside their total focus on self-interest and agree upon a sports betting bill that addresses consumer, taxpayer and state and local government interests in an inclusive, common-sense manner that clearly benefits California’s consumers. The Tribes will be a huge part of the equation given their political power. But the Tribes do not hold a royal flush hand. If they refuse reasonable compromises, the voters can turn against them. While some Tribes fear that the mobile element of sports betting will cannibalize their casino business, the fact remains that the tribal casinos do not conveniently service all California consumers. It is better for the Tribes to be at the table when drafting sports betting legislation then to be on the sidelines. The inclusion of all interested parties is what will push sports betting over the finish line the fastest. In summary, the voters in California in November 2022 sent a message to the Tribes and the large sports book operators. The message is loud and clear, please put forth a sports betting bill that creates options for the consumer, benefits the taxpayers, ensures a sports betting market that is well regulated and free from corruption and includes a strong responsible gaming element. In many ways, California is viewed as the holy grail for the sports betting industry. It is not a cheap knock off. California’s current gaming industries and the mobile and online sports betting operators, as well as California legislators, have a great opportunity to create a sports betting bill that establishes a well-regulated and consumer friendly sports betting structure that can make California the strongest, most successful sports betting system in the country, if not the world.
JOHN K. MALONEY Principal Attorney at the Law Offices of John K. Maloney. For more information contact: +1 (702) 387-9397 jmaloney@johnkmaloneylaw. com
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IMGL MAGAZINE | JANUARY 2023
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