California tribes are once again considering the possibility of sports betting in the state. With a population exceeding 39 million, California presents a significant opportunity for betting that is unparalleled by any other state in the country. Despite previous unsuccessful attempts to legalize sports betting, tribes in California are determined to push forward. The California Nations Indian Gaming Association (CNIGA) recently met to discuss the possibility of introducing a new initiative to be included on the ballot in either 2026 or 2028.
James Siva, Chairman of CNIGA, expressed optimism about the potential success of this new initiative, which will be developed by a select group of tribal representatives. Siva emphasized the importance of garnering widespread tribal support for the initiative. The initial workgroup will consist of tribal leaders, with the possibility of involving attorneys and consultants for further refinement.
In an effort to avoid the division that hindered previous campaigns, Siva stressed the importance of a unified approach among tribal leaders. During the 2022 election campaign, tribes were divided over three different initiatives, including two tribal proposals and one commercial initiative. Siva hopes that by encouraging tribal leaders to actively participate in the workgroup, all voices will be heard on the issue, leading to a more cohesive strategy. The commercial operators, who launched their own initiative in 2022, have seemingly conceded defeat. Despite this, they remain hopeful that they will still have a role in shaping the state’s betting market.
Legalizing sports betting in California has proven to be a challenging task, with disagreements arising over the structure of a potential legal market. In November 2022, California tribes clashed with commercial operators as two conflicting initiatives made it to the ballot. One proposal aimed to grant tribal casinos exclusive rights to operate sportsbooks, while the other sought to open the market to major operators like FanDuel, DraftKings, and BetMGM. Both initiatives failed to garner sufficient support, with voters overwhelmingly rejecting the commercial option.
The battle over sports betting in California was costly, with an estimated $450 million spent collectively by both sides on advertising campaigns for or against the proposals. This expenditure set a new record for ballot measure spending, surpassing the previous high set by ride-sharing companies Lyft and Uber in 2020. Despite the setbacks faced in 2022, there remains hope for the potential legalization of sports betting in California, with tribes actively working towards a new initiative for future consideration.