Legal sports betting in California will most likely be discussed in 2024 if nothing changes in 2023. Both Proposition 26 and 27 failed to gain the majority vote, but the battle will continue as both sides will work on their future marketing campaigns.
Sports Betting In California Will Have to Wait
Prop 26 would have allowed sports wagering in tribal casinos and the four race tracks that are spread across the state. On the other hand, Prop 27 would permit reputable mobile sportsbook operators to enter the Golden State.
Both sides of the argument have made strong points, as a plethora of money was used to bolster their campaigns. The efforts ended up becoming futile in the end, but the coalition of tribes had the edge during the end of the Mid-Term Election. Even though both initiatives performed horribly on the ballot, the mobile campaign went down as one of the worst-performing measures in the state’s history.
Prop 27 failing miserably was still a major victory for the gaming tribes as the public was supporting them more. Retail sports betting was advocated by both political parties in California, including Gov. Gavin Newsom.
The reasoning behind this was many of the sportsbook operators are headquartered on the East Coast. California also has a bill that helps combat homelessness in place, and the potential revenue generated from online sports betting wouldn’t make much of a difference. They believe most of the money will eventually leave the state.
The Tribes in the Golden State Didn’t Hold Back
The San Manuel Tribe of Mission Indians didn’t hold back on any opinion as they believe that mobile
sports betting will be more harmful to the state. However, they do see value in FanDuel and DraftKings on a different side of the business.
Reputable sportsbook brands have amazing technology backing, as they would be great providers for local brands. San Manuel Tribe of Mission Indians chief operating officer Frank Sizemore stated;
“There would be… “no co-branding,” with major national brands operating in the background, “similar to the way Cisco and others operate your computer system.”
Most of the tribes voted against beginning mobile sports betting in California, but there was a smaller coalition of tribes that advocated for Prop 27, as they weren’t going to get involved in the gaming business. The battle is far from over, but brands like FanDuel and DraftKings still offer their respective DFS platforms in the state.
What Can Both Sides Do as They Plan?
There is no question that California will be a very lucrative destination for sports betting, as it has nearly double the population compared to New York. San Manuel seems like they will welcome playing the long game, as the numbers show that the tribes have the upper hand.
For now, people who are looking to place wagers could head over to states like Arizona and Nevada. Using offshore sportsbooks in the United States is frowned upon, but it is still an option for those that cannot leave the state frequently.
