California is an exercise in frustration. Legal sports betting continuously fails to pass in the Golden State. Two sports betting initiatives failed to pass in the November 2022 ballot, forcing the market back another two years.
While lobbyists, tribal leaders, and lawmakers look ahead to 2024 for another run at passing sports betting, the results have shown that this is an uphill battle. Bother initiatives saw more than 60% of voters opposed to the measures. Those in favor will need to work hard to convince residents of the benefits of sports betting.
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When will California sports betting be legal?
The possible launch date for legal California sports betting is unknown at the moment. There were two initiatives under that were put to a vote; both failed to pass during the November 2022 elections.
Prop 26 would have legalized sports wagering at land-based Indian casinos and horse racing tracks exclusively. This plan would not include online/mobile wagering for the foreseeable future. This initiative wass backed by the tribes themselves.
Prop 27 came from the state’s legislature. Under that plan, online/mobile wagering would be made available on platforms affiliated with the tribal casinos and racetracks. This plan was opposed by the tribes because it would also allow the state’s cardrooms to continue offering the house-banked card games the tribes feel infringe on their exclusivity.
Because both measures failed to pass, backers of each initiative will need to wait until 2024 to present the bills again on the ballot. For the time being, there are no legal sports betting options in the Golden State.
Why California Sports Betting Is Failed In 2022
With two separate sports betting measures on the 2022 November ballot competing against one another, there was always the risk of neither passing. Those in favor of Prop 26, the tribal sports betting bill spent millions opposing Prop 27, the online sports betting bill. This led to Prop 27 responding with its own ad campaign slandering Prop 26. Both have combined for over $400 million in ads which have had a negative effect on the voter base in California.
Additionally, Prop 27 in particular has seen opposition from local tribes as well as prominent organizations. The California Association of Counties, the California League of Cities, and the Major Teachers Union all oppose online sports betting and have invested in this. This ultimately led to the bills failing to pass when put to a vote. Residents were overwhelmingly opposed to betting.
Because of this, operators are looking ahead to 2024 to make a push for sports betting. The CEOs of both DraftKings and FanDuel have come out and stated that they are setting their sites for 2024 due to the state of affairs at this time. Sports betting fans in California may have to wait a bit longer for a sports betting market.
How does California sports betting work?
There currently is no legal sports betting framework in California, although there are two initiatives under consideration.
Where can I bet on sports in California?
At the moment, there is no legal sports betting framework in California. Depending on which of the two competing initiatives eventually passes via voter referendum, bettors will either be limited to placing sports bets at Indian tribe brick-and-mortar casino locations and racetracks (the tribes’ initiative) or through online/mobile platforms associated with Indian tribe casinos and racetracks (legislative initiative).
How old do I have to be to place sports bets in California?
There is currently no legal sports betting in California. However, based on other gambling-related activities in the state, it would be reasonable to expect that bettors will have to be at least 21 years of age to place a bet whenever wagering is legalized.
How do I begin betting on sports in CA?
With no legal sports betting currently available in California, there is naturally no set policy and procedures in place for establishing a betting account in California.
However, following the model of other states, it’s expected that bettors will have to provide the following basic information to open an account:
- Name
- Age
- Address
- Phone number
- Social security number for tax purposes
- Valid e-mail address if online account
How do I withdraw my winnings?
Sports betting is not yet available in the state of California, and it remains to be seen if the initiative that allows online wagering will be the one that eventually is codified into law.
If online/mobile wagering is eventually available in California, it’s reasonable to expect that operators will offer the conventional withdrawal methods they typically make available in other states where legalized betting is already available.
These methods include:
- ACH/E-check
- Check
- Paypal
- Prepaid card supplied by the operator
However, if sports betting is limited to brick-and-mortar locations, then withdrawal options may be limited to checks or in-person withdrawals on site at sportsbooks.
Can I use my online sportsbook account outside of California?
Sports betting is not yet available in the state of California. If the measure being advanced by state’s Indian tribes is the proposal that is eventually voted on and passed, there would not be online wagering allowed. All bets under that plan as currently proposed would have to be made in person at the tribes’ brick-and-mortar casinos.
If the measure being advanced by the legislature is the one eventually voted on and passed, online wagering through platforms associated with tribal casinos and racetracks would be available. In this instance, bettors would physically have to be located within California – as verified by geolocation technology – in order to place a wager.
Will sports betting odds be competitive in California?
Naturally, it will be in the best interest of sportsbooks to offer competitive odds once sports betting is legalized in California. A principal factor will be what kind of tax rate and licensing fees operators are expected to pay under a legal sports betting framework.
What sports can I bet on in California?
If and when sports betting is legalized in California, it is expected that operators will be able to offer wagering on all major sports, as is the case in all other states already offering legalized wagering. That includes the following sports/leagues:
- NFL
- NBA
- MLB
- NHL
- CFL
- Golf
- Tennis
- NASCAR
- NCAA sports
Which California sports teams will I be able to bet on?
Should the state pass legal sports betting legislation, betting on the following teams, in addition to the major colleges, will likely be permitted:
- Los Angeles Angels (MLB)
- Los Angeles Dodgers (MLB)
- Oakland A’s (MLB)
- San Diego Padres (MLB)
- San Francisco Giants (MLB)
- Los Angeles Chargers (NFL)
- Los Angeles Rams (NFL)
- San Francisco 49ers (NFL)
- Los Angeles Lakers (NBA)
- Los Angeles Clippers (NBA)
- Golden State Warriors (NBA)
- Sacramento Kings (NBA)
- Anaheim Ducks (NHL)
- Los Angeles Kings (NHL)
- San Jose Sharks (NHL)
What types of bets can I make in California?
If and when sports betting is legalized in California, it is expected that bettors will have access to the following types of wagers:
- Moneyline: A wager on which team will win the game outright, regardless of margin of victory.
- Spreads: A bet based on the projected margin of victory that is set by oddsmakers.
- Totals: A bet on the combined score and whether it will be over or under a line set by sportsbooks.
- Futures: A bet on an outcome that has not yet happened.
- Parlays: A parlay is a bet that encompasses wagers on at least two separate sporting events. For a parlay wager to be deemed successful, all the bets that comprise it must be winning ones. If any wager within a parlay is a losing one, then the entire parlay is null and void.
- Props: Proposition wagers are bets that are typically based on metrics such as individual statistical milestones and team milestones.
In-game wagering and live betting
There is no specific indication at this point that in-game wagering and live betting will be prohibited under either of the active sports betting proposals in California. However, there’s always the possibility that outlook is altered before either measure is put up for a voter referendum.
What companies will offer sports betting?
It remains to be seen what companies/operators would be part of California’s sports betting market. If the initiative advanced by the tribes were to be the one that is codified into law, there would be no online sports betting options in California. As such, there may be a more limited number of companies involved in the market partnering with the tribes to run their brick-and-mortar sportsbooks.
However, if the legislative effort is the one that is eventually passed by voters, online/mobile betting would be made available to California residents. Under that scenario, there would be a substantial number of companies interested in entering the market, including:
- BetAmerica
- BetMGM
- DraftKings Sportsbook
- FanDuel Sportsbook
- Fox Bet
- PointsBet
- theScore Bet
- William Hill Sportsbook
Where will California sports betting tax revenue go?
Without an official legal sports betting framework in place, there is no set breakdown of how tax revenue from sports betting would be allocated within California.
If the model from other states is generally followed, the bulk of the revenue will naturally go into California’s coffers, with small percentages potentially going toward problem gambling initiatives or administrative costs related to the oversight of the industry within the state.
Eilers and Krejcik project the legislative initiative would produce $503 million per year in revenue for the state when the market is fully mature, including $282 million during the first six months when factoring in expected licensing fees. Meanwhile, the tribes’ plan, which would not include online wagering, is projected to bring in approximately $200 million per year.
Timeline
November 9, 2022 – Both Prop 26 and Prop 27 fail to pass in California, ending the hopes for sports betting in 2023. This sets the market back another 2-years before a launch.
October 26, 2022 – A new poll shows just 26% of potential voters would vote in favor of Prop 27 with 34% voting in favor of Prop 26.
October 25, 2022 – Governor Gavin Newsom officially denounces Prop 27, further hurting the measures chances of passing.
October 17, 2022 – The San Diego Union-Tribune and KGTV 10News released a new poll regarding sports betting in California. This poll revealed an increase in potential voters in favor of both Prop 26 and Prop 27.
October 11, 2022 – During the 2022 Global Gaming Expo G2E, CEOs of DraftKings and FanDuel both declared they anticipate sports betting failing to pass in November. They are setting their sites on 2024 now.
September 14, 2022 – An independent poll showed that Pop 27 is not favorable by potential voters, with 54% polling against the measure.
September 3, 2022 – The “Yes on 27” campaign released an advertisement in response to the anti Prop 27 ads.
July 22, 2022 – The Protect Tribal Gaming organization releases an advertisement slandering Prop 27 following its approval for the 2022 November ballot.
June 27, 2022 – Prop 27, the California Solutions to Homelessness & Mental Health Support Act, gains qualification for the ballot in November.
May 11, 2022 – California tribes who are left off of Prop 26 measure plan to propose another sports betting bill in 2024 to bring mobile tribal sportsbooks.
February 25, 2022 – An acceptance poll held surrounding sports betting showed that California sports betting sees 45% in favor, 33% against, and 22% unsure.
February 25, 2022 – Soe California tribes aim to add mobile tribal sportsbooks to the November ballot.
December 27, 2021 – Local California card rooms issue lawsuits to stop sports betting from putting put on the November 2022 ballot.
November 2, 2021 – California tribes to present a sports betting bill for consideration in 2022.
CA SPORTS BETTING FAQ
Sports betting is not yet legal in California. However, there are efforts underway that could result in voter referendums in either November 2020 or 2022. The two ongoing initiatives presently under consideration both involving the state’s Indian tribes.
The first would legalize sports wagering at land-based Indian casinos and horse racing tracks exclusively. This plan would not include online/mobile wagering for the foreseeable future. That initiative is being advanced by the tribes themselves.
The second effort stems from the state’s legislature. Under that plan, online/mobile wagering would be made available on platforms affiliated with the tribal casinos and racetracks.
Not at this time. A proposed ballot initiative just failed to garner enough signatures to make the 2020 ballot. There are no other proposals on the table right now.
In short, a large state means that there are many stakeholders who have or want to have a say in the matter. Between California’s tribal interests, cardrooms, and horsetracks, there are often disagreements and squabbles about whether to introduce new forms of gambling in the state.
The reality is that sports betting could be legalized in November 2020, in November 2022 or by neither date in a worst-case scenario. The two November dates allude to elections where the state’s voters would have their say on a constitutional amendment to legalize sports betting in California under one of the two aforementioned initiatives currently being considered.
Both the tribal and legislative initiatives currently being considered will have until June 25 to qualify for the November 2020 ballot.
Yes, the state already has several other gambling-related options at this time:
– 87 cardrooms, 66 of which are active, in which patrons engage in peer-to-peer games such as poker.
– Parimutuel wagering on horse racing. Bets are possible at the state’s five horse racing tracks (Cal Expo, Del Mar, Golden Gate Fields, Los Alamitos and Santa Anita). There are also 27 satellite wagering facilities in the state.
– 63 Indian casinos operated by 61 different tribes.
– California State Lottery, offering scratchcards and draw games.
– Charitable gaming (bingo games, raffles, poker nights)
Daily fantasy sports (DFS) are also available to Californians, and the DFS market in the state was most recently estimated to consist of approximately 120,000 participants paying approximately $200 million in entry fees.
However, it’s worth noting the DFS industry is not operating in the state under a regulatory framework, as official legalization attempts have not yet been successful.
Technically, the legal gambling age in California is 18. However, many gambling establishments also serve alcohol. So, in order to satisfy those restrictions, most gambling facilities are necessarily 21 and up.
No. Be very cautious with these sports betting sites. They are offshore interests and cannot offer the same level of protection and security that legal interests can. In the event of any kind of shutdown or dispute, you might find yourself without much recourse to address your concerns.
As of June 2020, two of California’s closest neighbors, Oregon and Nevada, offer legalized sports betting.
Nevada has of course offered sports betting the longest of any state in the country by far. The Silver State has offered single-game wagering since 1949. Meanwhile, Oregon began offering legal single-game wagering in August 2019. The Scoreboard betting app launched in October 2019, while the Chinook Winds retail sportsbook has been open since September 2019.
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