Two Proposals for Tribal Sports Betting Submitted in California
In California, there's not much optimism for the chance of passing sports betting initiatives in the 2024 election cycle. On a recent Friday, two proposals emerged, aiming to put sports wagering on the ballot for the state's voters.
The Sports Wagering Regulation and Tribal Gaming Protection Act was filed in the office of Attorney General Rob Bonta, and Ryan Waltz signed it. He also requested that anyone with media or public inquiries should direct them to Reeve Collins. Collins had previously served as co-founder and CEO of Pala Interactive, the online gaming division of the Pala Band of Mission Indians.
However, the 40-page filing does not mention the Pala Band of Mission Indians. Boyd Gaming bought Pala Interactive for $170 million in cash last November. At present, it's unclear who Waltz is or how he's linked to California tribal gaming, but in the filing with the Attorney General's office, he confirmed that he is a registered voter there.
Earlier in the month, it was reported that Pala Chairman Robert Smith had been talking to other California tribal leaders about reviving a sports betting ballot initiative for 2024. But it's rumored that he faced opposition. During the 2022 midterm elections, voters in the Golden State resoundingly voted down sports betting plans from both commercial and tribal gaming operators.
New Filing Uses Familiar Ploys for Sports Betting
Because it's the most populous state, housing around 39.24 million people at the end of 2021, California is the most sought-after of the 15 states that currently don't allow sports wagering.
As the largest state, navigating California's landscape for sports betting is challenging, given the tribes' grip on casino gaming. California's tribal casino operators hold exclusivity contracts with the state, believing this monopoly status extends to sports betting. Consequently, they made an effort to defeat Proposition 27, a commercial gaming sports betting proposal, in 2022, investing over $100 million in the process.
Similar to the previous proposal, Waltz employs familiar tactics in the new filing. This includes highlighting the contributions of California tribal casinos to the state's economy and mentioning that Californians are engaging in a regulated black market estimated to be worth approximately $1 billion annually.
Despite these successes, the future of gaming increasingly looks to be shifting towards online-based platforms and mobile devices. Unregulated and untaxed sports betting is happening in California, but it is untaxed and without the requisite consumer or responsible gambling protections.
Interestingly, the document omits the fact that California tribal casino operators do not pay traditional income tax to the state. It also fails to mention that the tribes desire to shut down the state's cardrooms, which could lead to bankruptcy for certain towns and jeopardize essential services such as 911 and parks.
The Filing Tugs at Tribal Gaming Expertise
Another key point emphasized in the filing is the experience of California tribal casino entities to manage sports wagering.
According to the document: "A well-supervised sports wagering system for California must limit sports wagering only to highly regulated, suitable operators experienced in gambling operations, with a proven record of regulatory compliance in the California gaming market." Furthermore, "the most trusted entities to safely operate sports wagering in California are Indian tribal governments who have decades of accumulated experience operating in-state gaming casinos."
However, the San Manuel Band of Mission Indians is the only California tribe running a casino in a state where sports betting is legal, and their sportsbook is operated by Caesars Entertainment's William Hill. Therefore, California has a wealth of gaming experience; still, they lack a tracking record in running sportsbooks.
The fate of the filing remains to be seen. Without the support of California's leading tribal operators, like Agua Caliente, Morongo, and San Manuel, the prospects of the initiative are bleak. Georgia currently stands out as the most likely mid-sized or large state to approve sports betting in 2024.
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Source: www.casino.org
