The Sports Wagering Regulation and Tribal Gaming Protection Act, introduced in October, could revolutionize the landscape of betting in California if it secures approval.
Under this proposed ballot, Article IV, section 19 of the California constitution would be amended, granting exclusive rights to tribes for both retail and online betting.
The initial version of the ballot outlined several measures, including tribes contributing 15% of their adjusted sports betting gross gaming revenue to a tribal wagering revenue sharing trust fund.
Additionally, 10% of the revenue would go towards the California homelessness and mental health fund.
Tribes would also need to form partnerships with sports betting operators, subject to approval from both the Tribal Gaming Agency and California gaming agency.
However, amendments have been made to the ballot in response to feedback from various stakeholders.
Notable changes include delaying the start of sports wagering until July 1, 2025, instead of the initially proposed date of September 1, 2025.
There has also been an increase in income-sharing for tribes, benefiting those currently receiving around $1.0 million annually.
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 living beyond a 10-mile radius from a casino would be eliminated after two years.
Furthermore, the ballot now facilitates tribes in becoming their own affiliates and imposes taxes on promotional credits after five years.
Importantly, tribes will not be financially responsible for supporting the passage of the proposition; Eagle1 will bear the costs of signature campaigns, estimated at $25 million, and public vote campaigns, likely costing several hundred million dollars.
The ballot envisions California becoming the largest legalized sports betting market in the US, with projected 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.
Without the backing of the majority of tribes, the proposal will not move forward.
Thompson acknowledges the revisions made to accommodate tribal and regulatory feedback, aiming to create a solution that benefits everyone involved.
Reeve Collins, CEO of Pala Interactive, supports these amendments, highlighting the inclusive nature of the proposal, catering to tribes, land-based casinos, regulators, out-of-state operators, and Californian residents.
Eagle1 intends to work closely with tribal leaders to gain support for the proposition, with the goal of placing it on the 2024 California election ballot and ultimately making it law.
Regarding the next steps, Pala Interactive has 180 days to gather the necessary signatures through random sampling, pushing the deadline to April 23, 2024.
A minimum of 874,641 signatures is required for the ballot to be considered by voters, with at least 500 signatures needing verification. The 2024 election is set for November 5.
However, challenges may arise as voters rejected sports betting proposals in California recently.
Despite some support for legal sports betting, recommendations from Democrats and the presence of competing initiatives led to the rejection of both proposals in the November 2023 ballot.
The success of the revamped Sports Wagering Regulation and Tribal Gaming Protection Act remains uncertain.