California could soon cause a huge shift in the current US sports betting industry as it would become the state with the largest population to legalize wagering. Lawmakers in the state have been trying to legalize the industry for years, but it’s completely out of their hands at this time.
Right before the start of the COVID-19 pandemic, Native American tribal leaders began to collect signatures that would allow them to create a ballot initiative. The pandemic kept them from collecting enough signatures, and it also gave sportsbook operators time to rally.
In November, there will now be two propositions on the ballot, and both of them are extremely different. One would create an online sports betting market similar to other states, while the other would limit betting to retail casinos.
Professional sports teams have also gotten involved in this push, as they would also benefit from the launch of legal sports betting. These teams would be able to form partnerships with sportsbooks to offer some form of betting in or around their stadiums or arenas.
Tribes Back Prop 26
Since the Native American tribes were the first to get their signatures in, they will have the first spot on the ballot. Proposition 26 is being supported by the tribal casino operators, and it would limit sports betting to those properties.
There is a chance that online sports betting could come with Prop 26, but not until at least five years. The Native American tribes are not only getting push back from the sportsbook operators, but they are also dealing with complaints from cardrooms.
Sports betting isn’t the only thing included with Prop 26, as it would also give the tribes the power to offer craps and roulette. Even if Prop 26 passes, sports betting wouldn’t officially be legal until a new gaming compact was signed with the state.
Sportsbooks Hoping to Cash In
Proposition 27 is being proposed by some of the biggest names in the sports betting industry. It would create an online sports betting market similar to other states. The supporters of Prop 27 have spent millions of dollars to back this, and that move has actually caused some trouble in the state.
FanDuel and DraftKings have combined to pledge nearly $70 million to advertise throughout the state of California, and other companies have joined in as well. If this Proposition was approved by voters, then it would legalize the industry almost immediately.
The initial target launch date would be prior to the start of football season in 2023, and it could allow the state to be online just in time for the NFL and college football season.
Both Could Fail
According to several different companies that have been polling voters in the state, both of these propositions will likely fail at the poll. It’s not even that the two options will create a competition, but the fact that most residents don’t appear to be ready to accept sports betting.
The sportsbook operators have made it clear that they would be willing to work with tribal leaders if both propositions pass, but that’s not what the tribes want. Native American tribes don’t want to give up complete control of the gambling industry, and they don’t want to see any betting being done online.
This would be a huge blow to sportsbook operators if both propositions fail, but especially if Prop 27 is defeated. Both companies continue to advertise pretty hard in an attempt to convince voters that legal sports betting is the way to go.
