Sports betting regulation to be addressed in California

Jake Graves December 5, 2023

Crucial amendments have been suggested to address tribal concerns and regulatory issues in the US state of California.

Key modifications have been called for in the hopes of enhancing revenue sharing along with inclusivity among California’s diverse tribal communities.

Pivotal alterations involve increasing the revenue share for limited and non-gaming tribes seeking to rectify imbalances among various tribal groups, fostering a more unified stance among stakeholders.

Key modifications

The finalised initiative will boost the percentage of operator revenue allocated to the Revenue Sharing Trust Fund (RSTF) to 25 percent, replacing the previous 10 percent allocation to homelessness and mental health funding.

Additionally, a limit to in-person sign-up requirements for online sports betting accounts will be applied to the first two years, which will allow mobile sign-ups within a 10-mile radius of tribal casinos.

A five-year sunset period for promotional credits, starting at 15 percent will also be introduced through the initiative, gradually decreasing to zero. Furthermore, the start date for California online sports betting has been pushed to no earlier than July 1, 2025.

Response to previous criticisms

The originally amended proposal faced heavy criticism in 2021, with particular objections being had by three Californian tribes.

These claims were addressed through the amendments in question with the removal of the provisions deemed problematic, demonstrating a commitment to address the specific needs and concerns of tribal leaders.

Further criticisms

The California Indian Gaming Association (CNGIA) formally opposed two sports betting proposals in October, criticising the handling of initiatives and emphasising tribal expertise in deciding what is best for their communities.

These criticisms will be aimed at when the state produces fiscal estimates due on December 18th with the attorney general releasing a circulating title and summary due on the 2nd of January.

If proved successful, the initiative in question would amend the state constitution itself, permitting sports betting on professional, collegiate, and select amateur sports.

Additionally, Tribal compacts with the state would include sports betting, and the initiative will legalise craps and roulette at tribal casinos.

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