California coalition launches sports betting ballot initiative
California Sports Wagering and Consumer Protection Act would limit wagering to “highly regulated” and experienced operators under strict state oversight
A coalition of California cities has submitted a draft legislatory initiative to include regulated sports betting on the ballot in state-wide elections in November 2022.
The California Sports Wagering and Consumer Protection Act would limit sports betting to “highly regulated entities” and experienced operators including state and federally recognized tribes.
State-licensed gaming establishments and professional sports leagues will be allowed to have sportsbooks at their facilities under the draft bill.
“The initiative replaces unregulated and untaxed operators with a safe and legal online and mobile sports wagering market,” the coalition stated.
“The initiative also establishes strong enforcement mechanisms to keep sports wagering away from underage Californians and sets aside funding for problem gambling programs,” it added.
Enforcement mechanisms include a requirement for operators to perform annual audits and publicly report their findings to state regulators.
In addition, the initiative requires age verification for online bets and outlaws advertising or marketing of sports betting children and young adults.
Estimates produced as part of the initiative claim illegal sports betting generates more than $10bn in revenue outside of current regulation.
One of the cities included in the initiative is Gardena, whose mayor, Tasha Cerda, cited a supercharged need for extra state revenue to deal with the impact of Covid-19 on Californians.
“Let’s bring sports wagering out of the shadows, regulate the industry, and use a portion of the proceeds to benefit all Californians,” said Cerda.
“Right now, the illegal and offshore operators reap those rewards and they’re bleeding us dry,” she added.
The initiative is the second major sports betting ballot bid following the Florida Education Champions (FEC) proposal to include parimutuels, sports stadiums, and mobile wagering in current Florida sports betting legislation via constitutional amendment.
The Florida-based not-for-profit and political action committee (PAC) is backed by sports betting heavyweights DraftKings and FanDuel.
Both ballot initiatives would require a 60% vote to pass.
In May, Florida senators approved a new 30-year tribal gaming compact with the Seminole tribe, granting the tribe significant control over Florida’s gambling market while allowing sports betting for the first time.
Competing operators can enter the state’s sports betting market but must operate as skins under technology provided by the Seminole’s gaming partner, Hard Rock Digital.