- The Sports Betting Alliance has unveiled a plan to legalize online sports betting in California
- The alliance is proposing at least four operators for the state, all of which would pay a guaranteed amount of revenue to the state’s 109 tribes
- Tribal opinions on the plan are split
The Sports Betting Alliance has floated a plan to legalize California sports betting for several operators, all of which would be responsible for paying a guaranteed amount of revenue to state tribes.
It’s the first major California online sports betting plan since a 2022 initiative to legalize was defeated by California voters.
The Sports Betting Alliance is proposing to license at least four online sports betting operators in the state, all of whom would guarantee minimum revenue shares for one large tribal entity, which would be jointly owned by the state’s federally 109 recognized tribes.
Will California Tribes Support the Plan?
Jill R. Dorson of Casino Reports was the first to report on the plan that came out of the Indian Gaming Tradeshow & Convention in San Diego.
The operators will compete against each other and contribute revenues to the tribal entity. The entity would then distribute the funds to the 109 federally recognized tribes as part of the deal. Finally, the approved operators would pay a percentage of revenue to the state of California.
The Sports Betting Alliance represents DraftKings, FanDuel, BetMGM, and Fanatics. It’s unknown if these four operators will be the only sports betting operators allowed in the state if the plan comes to fruition. If so, it would leave out major sportsbooks such as Caesars Sportsbook, ESPN BET, and bet365.
However, while the deal was discussed at the tradeshow, it still has a long way to go before being approved and presented to voters. Tribal leaders would have to agree and then California residents would have to approve the plan in a voting initiative, which likely wouldn’t take place until 2026 or even 2028.
But will the tribes support the plan? Victor Rocha, conference chairman of the Indian Gaming Association, took to social media after the plan was reported and said it was “DOA” (dead on arrival) after speaking with several tribal leaders.
While the early news is less than encouraging from Rocha, conversations will likely continue as the parties try to figure out a way to bring legalized online sports betting to what could be the largest market in the country.
No Hard Feelings After 2022 Voting Initiatives?
Relations between the tribes and major operators DraftKings and FanDuel have improved in recent years after the failed 2022 voting initiative that tried to open the state up to online sports betting. DraftKings CEO Jason Robins and FanDuel CEO Amy Howe have both said sports betting will have to be led by the tribes and the operators would serve as partners if the state ever legalizes.
The operators have tried to repair relations with California tribal leaders since voters roundly defeated sports betting initiatives in the 2022 election. Both the tribes and operators spent millions on their campaigns, only for both initiatives to not come close to being approved by voters.
Prop 27, the “California Solutions to Homelessness and Mental Health Support Act,” only received 16.6% votes in favor of the proposition, well below the necessary 50% for legalization. Prop 27 aimed to legalize California online sports betting for operators partnered with California Tribes.
Prop 26 fared slightly better, receiving 29.9% yes votes, but again fell well short of what was needed for legalization. Prop 26, “Tribal Sports Wagering Act,” would have legalized retail sports betting for California Tribal Casinos, four state racetracks, and expanded gaming opportunities for tribal casinos.
The Sports Betting Alliance, a coalition of gaming industry stakeholders, has been working diligently to develop a comprehensive sports betting plan for the state of California. With the recent legalization of sports betting in the state, there is a pressing need for a well-thought-out framework that will regulate and oversee the industry in a responsible manner.
One of the key goals of the Sports Betting Alliance is to ensure that sports betting in California is conducted in a safe and secure environment. This includes implementing measures to prevent problem gambling, protect consumers, and combat illegal betting activities. By working closely with state regulators and lawmakers, the Alliance aims to create a regulatory framework that will prioritize the integrity of sports competitions and the protection of consumers.
In addition to promoting responsible gaming practices, the Sports Betting Alliance is also focused on maximizing the economic benefits of sports betting for the state of California. By creating a competitive marketplace that encourages innovation and investment, the Alliance believes that sports betting can become a significant revenue generator for the state. This revenue can be used to fund important initiatives such as education, infrastructure, and public services.
Furthermore, the Sports Betting Alliance is committed to fostering partnerships with professional sports leagues, teams, and other stakeholders in the sports industry. By working collaboratively with these entities, the Alliance hopes to create a thriving sports betting ecosystem that benefits both consumers and the sports industry as a whole.
Overall, the efforts of the Sports Betting Alliance to develop a California sports betting plan are crucial in ensuring that sports betting in the state is conducted in a responsible and sustainable manner. By prioritizing consumer protection, promoting economic growth, and fostering partnerships with key stakeholders, the Alliance is laying the groundwork for a successful and thriving sports betting industry in California.
