Two California ballots aimed at legalizing sports betting were abandoned on Monday due to strong opposition from tribal groups in the state.
Eagle1 Acquisitions Corp, the group supporting one of the propositions, made several amendments to its ballot initiative in December in an attempt to gain tribal support, but these efforts proved unsuccessful.
The proposed legislation, known as the Sports Wagering Regulation and Tribal Gaming Protection Act, was introduced in October and sought to allow legal sports betting in the state. I
f approved, it would have amended Article IV, section 19 of the California constitution, granting tribes exclusive rights to offer both retail and online sports betting.
However, the California Nations Indian Gaming Association (CNIGA) rejected these proposals. In response to the withdrawal of both initiatives, CNIGA issued a statement warning against further attempts to legalize sports betting in California.
They applauded the decision to withdraw the initiatives, describing them as a “cynical attempt” to legalize sports wagering and online betting while exploiting tribal names.
The details of the Tribal Gaming Protection Act were relatively scarce, but the Sports Wagering Regulation and Tribal Gaming Protection Act outlined that tribes would have to allocate 15% of their adjusted sports betting gross gaming revenue (GGR) to a tribal wagering revenue trust fund.
Additionally, they would need to contribute 10% of their GGR to a California homelessness and mental health fund and partner with sports betting operators, who would operate as vendors.
Amendments were made in December in an effort to garner more tribal support, including an earlier launch date for sports wagering in July 2025 instead of September 2025.
GGR contributions to the trust fund were increased from 15% to 25%, and a requirement for in-person online gambling registration for those outside a 10-mile radius from a casino was set to be removed after two years.
The primary reason for the failure of the initiatives was the lack of tribal support, coupled with a general lack of enthusiasm for sports betting in California.
Even in the wake of these unsuccessful initiatives, there remains limited public demand for legalizing sports betting in the state.
A poll in February 2022 revealed only 30% of Californians supported sports betting, and previous attempts to legalize it through ballot measures in November 2022 were rejected by voters.
The path to legal sports betting in California appears challenging, requiring compromise and careful consideration of tribal interests to make progress.