Online and mobile sports betting with the support of a coalition of sports writers was included in the California ballot in November 2022. [Image: Shutterstock.com]
More than a million signatures
The battle for control of the legal online sports betting market in California is between sportsbooks and tribes.
Provided more than 1.6 million signatures
On Tuesday, a coalition of sportsbook companies headed by BetMGM, FanDuel and DraftKings confirmed that online betting procedures qualified for the ballot. The group submitted more than 1.6 million signatures in support of it, well over the million needed to reach the ballot.
In the opposite corner is a scale supported by California tribes, horse racing tracks, and card rooms that have already qualified for the ballot. As I mentioned before The Wall Street Journalindustry advisers say approval of the two proposals constitutes what could be the “most expensive political battle of the year”.
DK . nationDraftKings and Vox Media issued a press release on Tuesday which included a summary of the action taken by the coalition. It will create an online betting market where bettors in California can only place their bets outside the Indian reservations.
Sportsbook Scale gives state tribes exclusive online and mobile sports betting. However, it will allow operators, such as DraftKings, to partner with tribes to bet.
In addition, the measure establishes a 10% tax on sports betting revenue and licensing fees, with this directed primarily at regulation costs. Of what is left in the coffers, 85% will go to homelessness programs, and 15% to non-participating tribes.
In contrast, the tribal measure aims to legalize only retail betting in tribal casinos, state four racecourses, and eligible card rooms. The action also comes with a $100 million campaign spending to counter the offer of online sports betting.
To add to the complexity, there is another tribal measure in the race that gives tribal casinos the right to add online betting operations.
Competing entities are battling for control of one of the world’s largest potential betting markets, believed to be worth $3 billion. No wonder Peter Schwenk, a board member of the Fantasy Sports and Gaming Association, has called the California market “the Holy Grail.”
May be marketed on January 1, 2023
If Californians in November vote for any of the measures by just 50% +1, the state will pass the bill to legalize sports betting. May be released to market as soon as possible on January 1, 2023, according to DK . nation release.
In late February, a University of California poll revealed that 45% of voters in the state would support amending the California Constitution to allow sports betting. The percentage of opponents was 33% and 22% were undecided.