Is Sports Betting Legal In California?

Is Sports Betting Legal In California?

Is Sports Betting Legal In California: What You Need to Know

  • Current Status: As of now, sports betting is not legally permitted in California. This includes both online and offline/bookmaker-based betting.

  • Legislative Efforts: There have been multiple attempts to legalize sports betting in California through legislative proposals, but none have been successful thus far.

  • Tribal Casino Complications: There’s a significant debate between California’s gaming tribes, card rooms, and lawmakers, which has complicated efforts to legalize sports betting.

  • Voter Influence: Any change to California’s constitution regarding gambling requires voter approval, which means residents will have a say in the matter.

  • Future Outlook: While sports betting is not currently legal, the success of legal sports betting in other states means that California might reconsider its stance in the future.

California sports betting remains illegal, but the conversation around its future is far from over. After the defeat of two high-profile ballot measures in 2022 – Proposition 26, which aimed to legalize retail sports betting, and Proposition 27, which sought to bring online sports betting to the state – the debate is ongoing.

Powerful stakeholders backed both initiatives, including California’s Native American tribes and major sports betting companies, but neither garnered enough public support to pass.

Is This Likely to Change in The Future?

With a new push potentially delayed until 2026 or later, bettors in the Golden State are left wondering when – or if – they’ll ever be able to place legal wagers on their favorite teams. The state’s complex relationship with federally recognized tribes, who operate many of California’s casinos, has been a major factor in stalling progress.

Some proposals have included language favoring tribal control, while others focus on expanding online gambling options, creating a tug-of-war over who would benefit most.

As we look to the future, the path to legal sports betting in California remains unclear. Stay tuned for updates as we track the latest developments and explore when Californians might finally join the growing number of states with legalized sports betting.

Is Sports Betting Legal In California

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History of Sports Betting in California

The path to legalizing sports betting in California has so far been long, complicated, and expensive. After initially attempting a legislative route, advocates for safe and legal gambling in the Golden State have resorted to multiple, often competing, ballot initiatives.

The two most prominent, Proposition 26 and 27, saw tribes and commercial operators battling with large ad campaigns and ended up with the most expensive defeat for an initiative in US history. Read below for our guide to the twists and turns along California’s path to legal sports betting.

2017

  • July 20, 2017: After the US Supreme Court begins deliberations on the Professional and Amateur Sports Protection Act (PASPA) case, Assemblyman Adam Grey (D-21st District) proposes a constitutional amendment, ACA 18, to legalize sports betting.

2018

  • May 14, 2018: The US Supreme Court strikes down PASPA, allowing each state to legislate on gambling. Assemblyman Grey immediately re-introduces ACA 18 after the decision, but after it is referred to the Committee on Appropriations, it doesn’t progress any further.
  • June 12, 2018: Russell Lowery files a request with the California Attorney General to place legislation to legalize sports betting, the Gaming Fairness and Accountability Act, on the 2020 ballot.

2019

  • June 27, 2019: Assemblyman Grey and Senator Bill Dodd (D-3rd District) introduce a pair of constitutional amendments, ACA 16 and SCA 6, to allow sports betting.
  • November 14, 2019: A group of 18 Californian tribes, including the Pechanga Indian Reservation, file Initiative 19-0029, also known as the California Sports Wagering Regulation and Unlawful Gambling Enforcement Act, to legalize retail sports betting at tribal casinos and racetracks. The legislation also bans wagering on in-state college teams.

2020

  • January 8, 2020: A hearing is held to explore new proposals for sports betting, including mobile betting.
  • January 22, 2020: CA tribal leaders are given the go-ahead to collect the 997,000 signatures necessary to get Initiative 19-0029 on the ballot. Unfortunately, the COVID-19 pandemic complicates the effort, and they fail in their goal.
  • June 15, 2020: Tribal leaders sue the State of California to extend their deadline for collecting signatures.
  • June 22, 2020: Senator Dodd announces that he is withdrawing SCA 6 from consideration, citing the pandemic and tribal opposition for the decision.
  • July 2, 2020: Judge James P. Arguelles rules that tribal leaders should be given an extension until October 12 to collect the required signatures.
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  • September 15, 2020: The California Superior Court extends the deadline for Initiative 19-0029 again until December 14.
  • December 14, 2020: Tribal leaders submit 1.4 million signatures to the Secretary of State for their ballot initiative. If approved, this would allow it to appear on the November 2022 ballot. 

2021

  • May 27, 2021: California’s Secretary of State announces that the tribes had collected 1,062,880 valid signatures, and Initiative 19-0029 was added to the November 2022 ballot.
  • August 12, 2021: Helen Fisicaro, Raul Peralez, and Tasha Cerda, representing the cities of Colma, Gardna, Inglewood, and San Jose, file Initiative 21-0009A1 to allow statewide mobile wagering alongside retail betting at tribal casinos, card rooms, and horse tracks. The initiative is designed to prevent a tribal monopoly on sports betting and needs 997,000 signatures by April 2022 to gain approval for the November 2022 ballot.
  • August 31, 2021: A third initiative, backed by major gambling operators, called the California Solutions to Homelessness and Mental Health Support Act, is submitted to the California Secretary of State. It also requires 997,000 signatures to be approved no later than June 30, 2022.
  • October 5, 2021: To gain support from tribes for their initiative, major gambling operators produce an amended version of their sports betting initiative.
  • October 29, 2021: Tribes issue a press release stating their opposition to the major operators initiative. They also announce that four major tribes would join forces and issue a new proposal that addresses concerns from commercial operators and card rooms. The initiative would also allow statewide mobile gaming.
  • December 21, 2021: Two California card rooms, Hollywood Park Casino and Cal-Pac Rancho Cordova, sue the California Secretary of State over the tribal initiative, as they claim it deals with multiple subjects, which is banned in the state’s constitution.

2022

  • March 23, 2022: A group of organizations representing cities with card rooms publicly voice their opposition to the tribal initiative.
  • May 3, 2022: Supporters of the California Solutions to Homelessness and Mental Health Support Act announce that they have collected 1.6 million signatures, allowing them to also appear on the November 2022 ballot.
  • November 8, 2022: After months of campaigning in the most expensive ballot initiative campaign in US history, both initiatives are soundly defeated. Proposition 26, the tribal initiative, is defeated by a margin of 67% to 33%, while Proposition 27, the commercial operators’ initiative, is defeated by a margin of 80% to 20%.
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2023

  • October 27, 2023: Two ballot initiatives are filed with the Secretary of State to legalize sports betting.

2024

  • January 11, 2024: The Sports Betting Alliance, an industry group of major gambling operators, announces its opposition to both ballot initiatives. The initiative’s chances appear to be over, as a spokesman for the proposal states that no signatures had yet been collected.

Legality of Sports Betting in California

California’s gaming landscape features a thriving network of tribal casinos and horse racing tracks, but retail and online sports betting remain illegal. If legalized, tribal casinos and racetracks are expected to lead the way in offering retail sportsbooks.

At the same time, major online operators like DraftKings and FanDuel could enter the market, with tribal involvement shaping future legislation. Below, we’ve delved into the current landscape and how legalization may look for California’s bettors.

Is Sports Betting Legal In California: Retail Sports Betting

California is home to a robust gaming scene, with 76 tribal casinos spread across the state, making it the largest Native American gaming market in the country. Additionally, five racetracks are currently open for legal horse racing bets, offering retail wagering options.

While horse racing betting has been legal since 1933, none of the existing casinos or racetracks can currently operate retail sportsbooks due to California’s strict gambling laws.

Retail Betting in the Future

If retail sports betting were legalized, as proposed in the 2022 ballot with Proposition 26, it would have led to tribal casinos and horse racing tracks in major counties like Alameda, Los Angeles, Orange, and San Diego being able to open sportsbooks, creating up to 71 potential locations across the state.

If a future initiative is successful, many of California’s tribal casinos are likely to seize this opportunity, further enhancing their gaming offerings.

Neighboring states like Nevada, Arizona, and Oregon already offer retail sportsbooks, making them popular destinations for Californians eager to place sports wagers. While the future of retail sports betting in California remains uncertain, there’s little doubt that once legalized, tribal casinos and racetracks will play a key role in its development.

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Is Sports Betting Legal In California: Online Sports Betting

Online sports betting is currently illegal in California, and its future remains uncertain. Despite several attempts to pass legislation, including Proposition 27 in 2022, the state has yet to embrace online sports wagering.

If online sports betting is eventually legalized, it could feature some of the biggest names in the industry, including DraftKings, FanDuel, and BetMGM, alongside other established brands like Caesars Sportsbook and BetRivers.

Any future legislation is expected to heavily involve California’s tribal casinos, as their influence over gambling in the state is significant. A successful push to legalize online sports betting would likely require collaboration between tribes and commercial operators, and some of the legislation proposed even included in-person registration.

Future of California Sports Betting

The future of sports betting in California remains uncertain, with legalization facing numerous hurdles. After the defeat of Proposition 26 (retail sports betting) and Proposition 27 (online sports betting) in 2022, the conversation has shifted to 2026 or later.

+Native American tribes, racetracks, and commercial operators are all vying for control over, potentially, the most lucrative sports betting market in the United States.

California’s tribes, who currently hold a monopoly on casino gambling, are a major factor in delaying sports betting legislation. They fear losing control of card rooms or commercial operators, which has created a significant roadblock to progress. At the same time, horse racing tracks and lawmakers are eager to participate but must navigate the complex political landscape shaped by tribal influence.

With no significant push for sports betting expected until 2026 and tribal interests playing a key role, California bettors may have to wait several years before placing legal sports wagers.

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