California Sports Betting May Be On Track For 2026 Electoral Ballot After All

Progress on the California sports betting front remains slow moving. Ever since a pair of contrasting ballots flopped in 2022, state legislators and key stakeholders have operated with minimal urgency.

That might change by the 2026 election process.

This is not necessarily a revelatory development. Dialogue between California tribes and commercial sportsbooks has reached frequent, more collaborative heights than ever before.

At the same time, officials from both sides of the table remain noncommittal about the next steps. They all seem to agree collaboration is essential. But what will that working relationship yield?

To this point, it has not culminated in much more than hypotheticals. The absence of a California sports betting bill on the 2024 electoral ballot suggested a uniform agreement may be further away than the good vibes emanating out of online sportsbook operators specifically implied.

As a result, some experts are tinkering with their projections. Where sports betting in California once seemed destined to be legal in some form by 2026, it started to feel like it may not happen before the end of the decade. Indeed, many still wonder whether sports betting in Texas or sports betting in Georgia will be legalized before The Golden State gives their stamp of approval.

If the latest round of updates is to be believed, though, California’s foray into legal sports betting will come sooner than many began to think.

Encouraging Comments Made About The Future of California Sports Betting By Multiple Stakeholders

At a recent “The Power of Partnerships” convention, executives from FanDuel and DraftKings touted the progress made in California sports betting negotiations. Daniel Gligitch of The Sun breaks down all we need to know:

“DraftKings CEO Jason Robins and FanDuel President Christian Genetski attended ‘The Power of Partnerships’ conference at the annual Indian Gaming Tradeshow and Convention last week, according to a report from Politico. They held an on-stage discussion with Indian Gaming Association Conference Chair Victor Rocha, where they said that any path forward to legalize sports betting in California needs to be led by the tribes. The discussion came as part of a tribal advisory board that was established with the Sports Betting Alliance to bring the top gaming executives together with tribal leaders. 

“Politico reported that one possibility being considered is to create a single entity of all 109 recognized tribes who would then contract with gambling operators to offer online betting platforms. The sports betting companies would fund a campaign for a ballot initiative which could come as early as 2026.” 

This is the most concrete hypothetical to emerge in quite some time. And in theory, the setup works. Tribal nations get to oversee the fate of California sports betting, and online sportsbooks get to enter the market without waiting for a retail-wagering grace period.

There Is One Big Issue With California’s Potential Sports Betting Structure

Still, the proposal has some holes, at least as presented here. Chief among those potential hiccups: The sheer number of tribes in California.

Getting a dozen or so tribes on the same page can prove to be a chore. In California’s case, though, we are talking about over 100. Oklahoma is the only state that has more federally recognized tribal nations. Reaching a consensus when there are this many stakeholders involved isn’t just possibly trying. It is potentially impossible.

Larger tribal operators with more California sports betting revenue may be all aboard this plan. But what about smaller tribes? And those in more rural, less-populated areas? They will not enjoy lucrative contract offers from online sports betting sites in the United States. Some may not receive any real offers at all.

Of course, the proposal in question can safeguard against this. Perhaps all 109 California tribes would be guaranteed a contract. Politico’s report also mentioned the creation of a “single entity.” Does this mean every single tribe would broker a gaming compact with online sportsbooks in the USA as one force? And in that case, how does the revenue from that gaming compact get distributed?

Also: What does that mean for California online sportsbooks? Are competitors like FanDuel and DraftKings banding together in negotiations? Or does each company have to negotiate their own compacts with the 109-tribe entity?

Sports Betting in California Still Has A Long Way To Go

Until all of these questions have answers, the future of California sports betting remains hazy. We cannot even be sure the single-entity methodology will be the chosen course.

Remember, previous conversations broached the possibility of staggered rollouts. Tribal nations would launch their retail services first, with online sportsbooks to follow suit a year or more down the line.

Is that still on the table as part of this proposal? After all, tribes will still be looking to build up their brick-and-mortar sportsbooks. Or has that idea fallen by the wayside?

Either way, the launch of California sports betting operations cannot be considered imminent. Even if stakeholders cobble together a measure in time for 2026, voters must still approve it. That cannot happen until November. This, in turn, means California sports betting likely won’t launch until the end of 2027, if not 2028.

And once more, this all assumes the current collaboration unfolds without a hitch. The tenor of discussions seems pretty positive now. As California knows all too well, though, these things can change fast—for both better and worse.

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