Could Legislative Amendment Trigger the Passage of Sports Betting in California?

Every election cycle in California, at least one sports betting initiative falls short of passage. Categorically, it's the lack of support from California's strong Tribal organizations that leads to one initiative defeat after another.

While that doesn't paint a pretty picture in the eyes of California residents who want to bet on sports from their home stare, the most recent news shows a bit of promise. Slowly but surely, gambling proponents have been zeroing in on legislative language that is finding some support for the state's top Tribes.

Amendment Information For Current Calif. Sports Betting Initiative

Earlier this fall, sports gambling proponents submitted a new version of a sports betting initiative to the California Secretary of State (CSOS). This latest initiative is being led by Eagle 1 Acquisition Co. under the leadership of CEO Kasey Thompson. In the company's latest submission, they have amended information related to the revenue sharing for to limited- and non-gaming Tribes, offering increases from the prior submission.

In an interview with PlayUSA, Thompson stated:

“This is now the best California sports betting initiative ever because of the way it benefits all tribes. I think we’ve got a bill that works for every stakeholder, every out-of-state operator, every land-based casino, and a majority of the tribes right now.”

What Has Changed in the Amended Initiative?

After the prior initiative was presented to CSOs, the Chairs of three (3) top Tribes sent comment letters to the CSOS with their concerns. The three (30 Tibes in question were the Rincon Band of Luiseno Indians, the San Manuel Band of Mission Indians, and the Wilton Rancheria.

For beginners, the new amendment addressed Tribal concerns by removing the citations that were considered problematic. Other key changes in the amendment include:

• In place of a 10% allocation to homelessness and mental health funding, Revenue Sharing Trust Fund (RSTF) tribes will receive 25% of operator gross revenue (amount increased from 15%)
  
• In-person mobile registrations required the first two years
  
• Mobile sports betting account registrations will be permitted within 10 miles of Tribal retail casinos
  
• Diminishing promotional tax credits will be allowed over 5 years
  
• Proposed start date for mobile sports betting will be no sooner than July 1, 2025

Details of the Sports Betting Legislation As Is

Accounting for any recent changes, let's take a look at the current sports betting initiative that is sitting on the CSOS desk for approval right now:

• The state constitution would be amended to allow mobile and retail sports betting
  
• Calls for Tribal compacts to be adjusted to allow sports betting
  
• Details on how Tribes would serve as sports betting operators
  
• In conjunction with the Indian Gaming Regulatory Act (IRGA), a 40% cap on net revenue would be placed on management service provider contracts
  
• Mangement service providers would pay a 25% tax with all of it going to RSTF tribes
  
• Tribes can partner together to offer online sports betting
  
• Tribal casinos could start offering craps and roulette
  

Clearly, there is a lot of language here that favors California Tribes.