YOU CAN BET ON IT
Breaking down California’s sports gambling situation
California still hasn’t legalized sports betting, and it’s hurting them.
California still hasn’t legalized sports betting, and it’s hurting them.
If you read my last article, you now have all the tips and strategies for sports gambling in a safe and responsible way. Unfortunately, for most of you living in California, this is not a possibility.
California is the most populated state in the United States with millions of sports fans. Yet, it is one of only 16 states in the country where online sports gambling is illegal.
Why is this the case?
With the exception of a few states, the Professional and Amateur Sports Protection Act of 1992 effectively outlawed sports betting nationally. However, in Murphy v. National Collegiate Athletic Association, the United States Supreme Court ruled the entire statute was unconstitutional on May 14, 2018.
Since then, the majority of state legislatures have legalized gambling which has resulted in immense economic revenue. For instance, sports gambling generated $693 million in tax revenue for New York in 2022. The state’s gross gaming revenue for the entire year was $1.36 billion. California, on the other hand, has refused to join the wave.
Two significant propositions that may have resulted in the state of California legalizing sports betting were put forth to California legislators for the November 2022 ballot. With active ad campaigns and expenditures nearing $460 million, both initiatives set new records in California. However, they were both rejected, and it wasn’t even close.
Proposition 26, which was funded by Native American tribes, would have allowed sports betting to the four private horse racetracks, public racetracks, fairs and many other locations in the state as well as tribal casinos. Also, tribal casinos would have been able to start using dice games like craps and roulette. Ultimately, lawmakers rejected this proposal because they believed it would give a monopoly on all of gambling in California to powerful Native American tribes.
Proposition 27, paid for by national gaming companies, would legalize mobile and online sports betting outside of Native American tribal lands, specifically, on sports betting apps such as DraftKings and FanDuel. Additionally, a new section would be established at the state Department of Justice to oversee sports betting. In contrast to Proposition 26, this measure was shut down because lawmakers claimed the aforementioned gambling corporations wrote it for their own interests rather than the interests of lower-class Californians.
What do I think?
California is way behind the ball. The rationale behind the rejection of both propositions is fair, but it does not outweigh the economic and viewership benefits that would come from legalization. If legalized, sports gambling would provide more tax money for state and municipal governments, boost local retail sales and increase employment. Also, legalizing gambling would allow California fans to be more invested in games.
For now, California’s gambling options are restricted to Native American casinos, racetracks, card rooms and state lotteries. It is unknown at this moment whether the subject of allowing sports betting in California will return on the 2023 ballot.
We’ll just have to wait and see.
Until then, if you are a California resident and want to bet on the next USC game against Arizona State on Sept. 23, I recommend driving across state lines to Nevada or another state with legalized sports gambling.
If you or a loved one suffers from a gambling addiction, please call 1-800-GAMBLER to get help.
Joshua Sacher is a sophomore writing about the growing sports gambling phenomenon in his column, “You Can Bet on It,” which runs every other Wednesday. He is also a sports editor at the Daily Trojan.
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