And just like that, the push to legalize California sports betting in 2024 is officially dead.
This news will come as a bummer to gambling enthusiasts and online sportsbooks in the United States that have been anxiously waiting to crack North America’s biggest sports market. At the same time, the latest development also won’t come as much of a surprise to anyone who has paid attention.
Sponsored by Kasey Thompson, a gambling industry veteran, and Reeve Collins, a blockchain executive, the newest California sports betting bill has remained on life support ever since it was first introduced. By deciding to pull the plug, Thompson and Collins are merely admitting to what most experts thought was inevitable.
Still, their initiative to legalize sports betting in California was, in fact, approved for consideration. It even reached the signature collection portion of the process. Why did Thompson and Collins yank it from the table now?
And more critically, what does this mean for the future of sports gambling in California?
Sponsors of California Sports Betting Bill Admit Their Pitch Did Not Unfold as Intended
Thompson explained to Legal Sports Report’s Mike Mazzeo why he and his colleagues decided to pull the plug on their California sports betting proposal:
“My intent was to unite the tribes and not divide them. I spent 10 years in Indian Country and thought we were bringing something innovative at no cost to the tribes. I can now see the support is not coming and I always promised not to move forward without it. I am a man of my word and will not create any more division.”
Thompson is not kidding about the lack of support. In the time since he introduced this bill, most of California’s biggest tribes publicly opposed it. Even more recently, a collection of major online sportsbooks denounced the California sports gambling bill.
This basically put Thompson and Co. in an unwinnable situation. Most believe the effort to legalize California sports betting must be led by the tribes. Attempting to “innovate” on their behalf is problematic unto itself. But to also disenfranchise sportsbooks chomping at the bit to operate in California is essentially a death knell.
To Thompson’s credit, his bill did garner support from a handful of tribes in The Golden State. However, most of these tribes reportedly hold limited-gaming rights. For any California gambling bill to gain serious legs, it will need to resonate with members of the California Nation Indian Gaming Association (CNIGA). This coalition features main players such as the Morongo Band of Mission Indians, Pechanga Band of Luiseno Indians and San Manuel Band of Mission Indians. Incidentally, though, all of these tribes staunchly opposed the latest sports betting proposal.
Why Did the Failed California Sports Gambling Initiative Meet So Much Opposition?
When sports betting bills fail, they usually do so because key stakeholders fail to agree on the terms of legalization. These pitfalls can vary from the types of gambling getting greenlit to tax rates to compliance protocols.
In this case, though, it seems the California sports betting bill failed because of how it was introduced.
Members of CNIGA made it clear, through various statements, that they were not consulted by Thompson and Collins when they formulated this proposal. This is a huge red flag. Worse, there’s a chance the sponsors lied about it. They claimed to have communicated with tribes when putting together their bill.
Perhaps Thompson and Collins were referring to the tribes with limited gaming rights. They could have structured this bill while soliciting their input. But even that’s unacceptable. Anybody who has followed the California sports betting legalization process knows the buck stops with CNIGA. The House of Representatives and Senate stood by them in 2022, when tribes were attempting to overthrow a measure proposed by online sportsbooks. There is no way to legalize California sports betting without their involvement.
All of which makes the mode of operations here extremely curious. What, exactly, were the sponsors of this bill thinking? Did they always know this was going to fail? Did they simply think CNIGA would board the bandwagon? Are they that ignorant to what will get sports gambling in California over the hump? Frankly, it doesn’t matter now. But it’s important to understand how and why this all went wrong, if only for future sports betting lobbyists to avoid the same mistakes in the future.
What Does This All Mean for the California Sports Betting Timeline?
Gambling enthusiasts in California should strap in for the long haul. Legal sports betting isn’t coming to The Golden State any time soon.
The process to legalize sports gambling is extensive. A bill must pass through both the California House of Representatives and Senate. From there, it must appear on a general election ballot. And general elections take place once every two years.
As of now, there will be no California sports betting bill on the 2024 general election ballot. The failed proposal was the only initiative on the table. Some think it’s encouraging that California’s tribes were on the same page with sports betting operators. And it just might be. But without another bill in the works, that optimism rings hollow.
Assuming no sports betting legislation is introduced in the 11th hour, California won’t have the chance to put another one on a general election ballot until 2026. And from there, it could take an additional year or two to roll out. Mind you, that’s assuming voters even approve it. Remember: California voters shot down two sports betting proposals in 2022.
The absolute earliest sports betting can come to California at this juncture is 2026 or 2027. More likely, though, the state is looking at 2028, 2029 or beyond.
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