All across the United States of America, sports have spent the past few months getting back up and running. We may not quite be back to a full schedule yet, and there might be fewer people in arenas than teams would ideally like there to be, but we’re not far from regaining a sense of normality – or at least a sense of normalcy in respect of sports.
With sport back in full swing, it’s reminded us yet again that California is still one of the only major states that’s yet to bring a sports betting bill to the table. Of the traditionally progressive states, it’s the last one standing. We’ve all heard the arguments for why sports betting shouldn’t be legalized here, and we’re aware of the objections from native tribes, but is the current stance doing the state a disservice?
California has always been a little contradictory when it comes to gambling laws and also a little shy of changing the status quo. That’s reflected in the state’s confusing stance on internet gambling. Technically speaking, it’s illegal to own or operate an online slots website or casino in California. In real terms, there are no laws that explicitly make it clear that it’s illegal for a Californian to access an online slots website or play online slots.
Since the invention of the internet, not one single resident of California has ever been charged with or convicted of playing online slots or taking part in any other kind of regulated gambling activity online. Californians do gamble on the internet, and they do play online slots with 10 free spins no deposit, but their money goes to companies that operate out-of-state. The cash is still being spent, and the gambling still goes on – it’s just that California doesn’t gain anything from it.
While California twiddles its thumbs, many parts of the rest of the country are currently cashing in on a sports betting bonanza that’s bringing in millions of dollars worth of new revenue in taxation. That money could be used to pay for a lot of things in a lot of Californian towns and cities, and all of us can probably think of a pet project or two we’d like to see invested in by the authorities. Getting that money would be as easy as proposing a bill and getting it passed, but right now, there seems to be no prospect of that happening for at least two years. In the meantime, millions of dollars are leaving California and enriching other places.
A recent study carried out in Las Vegas indicates that 22% of all the people from outside Nevada who visit Sin City every year come from California. That’s almost a quarter. Given the amount of money that’s spent in Vegas every week – let alone every year – that’s a colossal windfall to be missing out on. Not every state that legalizes sports betting can expect to cash in to the tune of $300m per year or more, but California could. There’s no reason to believe that the sports betting scene here wouldn’t be as big as it is in New Jersey.
The last time a serious attempt was made to bring sports betting to the fore was in the middle of 2020, where it ended up squashed in June before a vote could even be taken on it or any serious discussion could be had. Native American tribes have been blamed for proposals reaching a stalemate, but that isn’t necessarily fair.
The tribes aren’t opposed to the idea of sports betting, much as they’re not opposed to any form of betting that’s likely to bring them more money. They’re opposed to any sports betting bill that doesn’t bring them what they deem to be a fair share. Proponents of the bill who’d like to get their own slice of the action might think that the share they’re asking for is too much, but that’s a basis for discussion and negotiation. It’s not a basis for giving up and walking away from the table, and yet that’s what appears to have happened.
As anyone who follows local politics will know, a sports betting bill would have needed to be on the November ballot for sportsbooks to have had any chance of starting in California in 2021. That didn’t happen. After those failed June talks, Senator Bill Dodd declared that there was no longer time to get the bill in the shape that it needed to be in to appear on the ballot, and so negotiations were closed on the matter for the rest of the year.
That’s not a statement that Dodd will have made lightly. He believes that legalizing sports betting and opening up new betting facilities is in California’s interests, and he’d like to make it happen as soon as possible. He’s already confirmed that he’s going to push the issue again next year in the hope that it can appear on the 2022 ballot, and he believes that the tax revenue figures it could bring in might go as high as $700m a year.
If he’s right, can California really afford to miss out on that kind of money? Even if he’s too optimistic, would the state still be wise to pass if the sum was closer to $500m? That kind of money is the difference between initiatives being funded or not. It’s the difference between public services being provided or not. It’s a life-changing figure.
Realistically, sports betting is inevitable. It’s going to happen eventually no matter how anybody feels about it because everyone involved in the decision-making tree at the state level can see how much it’s making elsewhere in the USA. If gambling were illegal in California, it might be a different matter, but it isn’t. The facilities exist – they’re just limited by what they can and can’t offer.
Nobody knows how long the sports betting bubble might last. It could continue forever, or it could be a fad that burns out in four or five years. Should that happen, the state of California will be kicking itself that it didn’t make hay while the sun is shining. 2022 might already be too late – but if that’s the earliest it can happen, every effort should be made to ensure that it doesn’t take a moment longer.
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