The Sports Wagering Regulation and Tribal Gaming Protection Act, initially tabled in October, has undergone significant amendments in California, with potential implications for the state’s sports betting landscape.
If approved, this ballot initiative would modify Article IV, section 19 of the California constitution, granting exclusive rights to tribes for retail and online betting operations.
The revised version of the ballot introduces several key changes. Sports wagering would be allowed from July 1, 2025, instead of the initially proposed date of September 1, 2025.
Furthermore, the revenue-sharing arrangements for tribes have been substantially improved.
Tribes currently receiving approximately $1.0 million annually would see a potential increase of 15-20 times under the proposed measures.
In another significant alteration, the contribution to the tribal wagering revenue sharing trust fund from sports betting gross gaming revenue has been raised from 15% to 25%.
The requirement for in-person online gambling registration for individuals residing more than a 10-mile radius from a casino will be eliminated after two years.
Additionally, the updated ballot facilitates tribes’ ability to become their own affiliates and establishes a taxation policy on promotional credits after five years.
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Notably, the tribes will not be required to provide financial support for the passage of the proposition, with Eagle1 assuming the entire financial burden, including the costly signature campaign and public vote campaign.
The proposed ballot contends that California has the potential to become the largest legal sports betting market in the United States, with estimated annual wagers of $60.00 billion and revenue of $3.00 billion.
Eagle1 partner Kasey Thompson emphasizes the importance of tribal support for the ballot’s success, acknowledging the amendments made based on feedback from tribal leaders, regulators, and other stakeholders.
Thompson affirms that the ballot will not proceed without the majority approval of the tribes.
Reeve Collins, co-founder and CEO of Pala Interactive, endorses the amendments as inclusive and forward-thinking.
He believes the revised proposition accommodates the interests of tribes, land-based casinos, regulators, out-of-state operators, and the people of California.
The path forward involves gathering the required signatures to place the ballot on the 2024 California election ballot, with an aim to pass it into law.
To meet this goal, Eagle1 will continue collaborating with tribal leaders.
While the prospects of legalizing sports betting in California face challenges, proponents of the revised ballot hope to achieve success despite previous setbacks.
The 2024 election, scheduled for November 5, will be a critical milestone in determining the fate of sports betting in the state.