California Sports Betting Remains 'Distant Reality'

The immediate future of California sports betting is not looking so hot.

Optimism on the subject, of course, has waxed and waned since the failed attempt to legalize sports betting in California nearly four years ago. But rosier views have started to win out over the past year or so. The impetus? More dialogue and collaboration overall between The Golden State’s tribal members and online sportsbooks in the United States.

On the surface, this seemingly addresses the biggest roadblock to California sports betting. Aggressively warring agendas from both tribes and wagering sites upended the campaign to legalize gambling back in 2022. If they are now working together, it bodes well for the next round of legislative conversations.

Except, well, we do not know when those next round of discussions will take place. That uncertainty is telltale unto itself. No California sports betting measure appeared on the 2024 electoral ballot. Many wrote this off as a temporary pause. Everyone involved merely wanted to regroup before revisiting sports betting in The Golden State ahead of the 2026 electoral ballot.

However, the California legislature is currently scheduled to reconvene on January 5, 2026. We have yet to hear more than a whisper on the sports betting agenda—or perhaps the lack of one. Granted, there is still technically time. The legislature will meet all the way through August 2026. Even so, the dearth of mumblings have many experts bracing for another year of zero tangible progress. Some are even saying that California sports betting in general is a distant reality.

Momentum is Not Favoring California Sports Betting Legalization

The Times-News recently covered the status of California sports betting talks extremely in-depth. This excerpt perfectly summarizes the current state of affairs:

“The prospect of legal, regulated sports betting coming to California remains a distant hope, not an immediate reality. Despite the immense size of the potential market and the widespread legalization across most of the country, the Golden State continues its years-long legislative and political stalemate. The outlook for 2025 is defined by a sustained standstill, with a highly lucrative industry on hold due to a deep-seated conflict between powerful Native American gaming tribes and commercial sportsbook operators.”

This last line stands out. “Deep-seated conflict” suggests that the relationship between California tribes and sportsbooks is not as collaborative as it is being made out to be.

That is hard to believe in some ways. Companies like DraftKings and FanDuel have gone out of their way to tout the hiring of tribal stakeholders over the past couple of years. Surely some level of progress is being made.

Or maybe not.

Another Roadblock to a Sports Betting Agreement has Materialized

The chief issue for tribes has all along been the proliferation of online sports betting in the United States. Though they seem willing to allow mobile betting sites into California as partners, they have pushed back, hard, against the idea of independent operators.

This is the obstacle their collaboration with online sportsbooks seemed to resolve. As we know now, that is debatable. However, even if it is no longer an issue, another problem has bubbled to the surface: daily fantasy sports. As The Times-News writes:

“Adding a new layer of legal and political complexity in 2025 is the challenge to the legality of Daily Fantasy Sports (DFS). For years, DFS operators have functioned in a gray area, arguing their contests are games of skill and thus exempt from traditional gambling laws. However, in a significant development in the summer of 2025, California Attorney General Rob Bonta issued a formal opinion concluding that certain types of DFS games, specifically "pick 'em" contests, constitute illegal sports wagering under state law. The opinion asserts that these games involve wagering on sports and are therefore prohibited, regardless of where the operators or associated technology are located.”

California’s stance on daily fantasy sports runs in direct opposition with potential sports betting partners. Sites like DraftKings and FanDuel still use fantasy sports as part of their business model. If the state is pushing to take that away, in addition to legalizing sports wagering without offering independent licenses, it could lead to another counter-campaign.

Don’t Count on California Making Progress in 2026

Anything can happen over the next few months. At this rate, though, we will be genuinely surprised if a California sports betting proposal makes it onto the 2026 ballot.

While tribes have all the leverage, online betting sites will invariably only make so many concessions. If the state isn’t willing to back off its daily fantasy stance, specifically, we could see it leading to another contentious issue.

On the flip side, recent reports suggest the illegal California sports betting market is thriving. That may put pressure on all parties involved to accelerate an agreement. There is a ton of revenue being left on the table for all involved—tribes, the state, sports betting sites, all of them.

Then again, this was all true in 2022. And every year since. Even if the tenor surrounding California sports betting discussions has changed, the obstacles remain the same. Without a major change in dynamics between tribes and sportsbooks, it feels like the legalization of gambling on will have to wait another year.

And maybe much longer.

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