California AG proposes two sports betting measures pre-2024 election

Lea Hogg January 4, 2024

SiGMA news

California AG proposes two sports betting measures pre-2024 election

The Attorney General’s office in California recently proposed two measures aimed at legalizing sports betting in the Golden State, marking a renewed effort after the setback faced in 2022.

As the clock struck midnight on January 1, ushering in the new year with fireworks and celebrations, the United States officially entered an election year. Without any doubt, the anticipation of what promises to be a dramatic November 5 election, however the focus in California has also shifted to sports betting measures.

Understanding California’s new sports betting measures

The implications of the measures, if implemented, could change the future of the sports betting sector.

Initiative 23-0030 Amendment 1, spearheaded by Kasey Thompson, a self-proclaimed “tech bro,” stands out as a proposal that seeks to legalize tribal sports betting without the backing of the state’s tribes.

Thompson’s initiative envisions paving the way for state-wide online sports wagering, in-person sports betting, as well as roulette and dice games on tribal lands. The proposal outlines that tribes would contribute up to 25 percent of sports-wagering profits to non-participating tribes and up to 1 percent to the state for regulatory costs.

A fiscal analysis from an independent financial advisor suggests that the measure could generate substantial state revenues, potentially reaching tens of millions of dollars annually.

Second proposed initiative

In contrast, Initiative 23-0031 offers fewer details, indicating that tribes would be authorized to provide online sports betting on tribal lands for individuals aged 21 and over, subject to approval by the electorate. However, this measure lacks comprehensive information on the financial impact for the state and tribes, remaining more ambiguous in its projections.

With the initiatives now public, proponents face the daunting task of gathering over 800,000 signatures from the public by April to secure a spot on the November ballot. Despite the time constraints, proponents are determined to rally support for their respective measures.

Nevertheless, even if the measures make it onto the ballot, tribal opposition poses a significant hurdle.

Sports betting during 2022 midterms

The California Nations Indian Gaming Association (CNIGA) has formally opposed Thompson’s initiatives, expressing a commitment to preventing their passage in 2024. CNIGA Chairman James Siva, (in photo above), remarked, “The entire effort surrounding these initiatives was handled abhorrently by the initiative sponsors. This is another example of outside influences trying to divide and conquer Indian tribes. We will not let history repeat itself.”

The memory of the 2022 election on sports betting during the midterms looms large, as both Prop 26 (tribal sports betting movement) and Prop 27 (commercial sports betting proposition) suffered resounding defeats at the polls. Despite a staggering US $600 million spent by both sides in campaigning, neither bill achieve even a mere 20 percent support. As the battle for sports betting legalization in California intensifies, the road to success in 2024 remains uncertain, with tribal opposition standing as a formidable challenge to these proposed measures.

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