California, home to some of the most passionate sports fans and iconic franchises in the world, is a key battleground in the growing U.S. sports betting landscape. With the Supreme Court’s 2018 ruling that struck down the federal ban on sports betting, states have been granted the ability to legalize and regulate sports betting within their borders. Many states have already capitalized on this opportunity, but California has remained hesitant. As of 2024, sports betting is still illegal in California, but the conversation around its future is more alive than ever.
This article explores what the future holds for sports betting in California, from current developments to potential legislative changes, and what bettors can expect moving forward.
A Look Back: The History of California Sports Betting
California has a long history with gambling, from the state’s popular tribal casinos to horse racing tracks and the lottery. However, when it comes to sports betting, the state has been slow to embrace legalization. In 2018, the U.S. Supreme Court ruled in Murphy v. NCAA that the federal ban on sports betting was unconstitutional, giving individual states the right to decide whether to legalize the practice. Since that ruling, states like New Jersey, Pennsylvania, and Michigan have quickly launched legal sports betting markets, generating billions in revenue.
California, on the other hand, has been unable to pass comprehensive sports betting legislation, despite its massive market potential. In 2022, two major sports betting initiatives—Propositions 26 and 27—were placed on the ballot, but both were rejected by voters. Prop 26 focused on in-person sports betting at tribal casinos, while Prop 27 aimed to legalize online sports betting. Both initiatives faced strong opposition from Native American tribes, who viewed them as a threat to their gambling operations. Despite this setback, the fight for legalization is far from over.
The Current Status of Sports Betting in California
As of 2024, sports betting remains illegal in California. However, there are several avenues through which residents can legally engage in gambling:
- Tribal Casinos and Racetracks: While sports betting is not yet legalized at these locations, California’s tribal casinos and racetracks remain popular destinations for gambling. Tribal casinos, in particular, have long been a powerful force in the state’s gambling laws. Should new legislation pass, tribal casinos could become central players in California’s sports betting market.
- Offshore Betting Sites: Although offshore sportsbooks claim to serve California bettors, they are unregulated and operate outside the jurisdiction of U.S. authorities. While some residents may use these sites, they present significant risks, including the lack of consumer protections and the potential for fraud. Bettors are advised to avoid these platforms.
- Horse Racing: Legal wagers on horse racing remain one of the few legal forms of sports betting in California. Californians can place bets on both live races at tracks like Santa Anita Park and Del Mar, as well as through online racebooks.
While these options exist, the most anticipated change for California bettors remains the potential legalization of sports betting.
What’s Next for California Sports Betting?
The push for California Sports Betting legalization is far from over. Several key developments are likely to shape the future of this market in the coming years.
1. Future Legislative Proposals
Given the size and economic importance of California’s market, it’s almost inevitable that the state will eventually legalize sports betting. Lawmakers are expected to reintroduce new proposals in the coming legislative sessions, potentially with a more balanced approach to appease the various stakeholders involved, especially the powerful Native American tribes.
In recent years, there have been discussions of a hybrid model for sports betting in California, where both in-person and online sports betting could be allowed. This model would provide a compromise between tribal casinos and commercial sportsbooks, helping to bridge the gap between the interests of various groups.
2. The Role of Native American Tribes
Native American tribes play a significant role in California’s gambling landscape. They have long operated casinos that contribute substantial revenue to the state’s economy. For any sports betting legislation to succeed in California, it will likely require the buy-in of these tribes.
Tribal casinos are advocating for a model that limits sports betting to their facilities, ensuring that they retain control over the market. However, some tribes may be open to expanding sports betting beyond their casinos if they are able to partner with online operators or receive a share of online betting revenue. As the debate continues, tribal interests will remain a key factor in determining the future of sports betting.
3. The Rise of Online Sports Betting
While California’s sports betting landscape currently prohibits online sportsbooks, the future of online betting is one of the most promising aspects of the state’s potential sports betting market. Online sports betting has become an economic powerhouse in states like New Jersey and Pennsylvania, where sportsbooks generate millions in tax revenue.
Legalizing online sports betting in California could create a massive market, benefiting both bettors and the state’s economy. Major online operators like DraftKings, FanDuel, and BetMGM have shown interest in entering the California market, and their entry could bring competition, innovation, and a wide range of betting options for bettors.
For residents who enjoy the convenience of betting from their mobile devices, the legalization of online sports betting could revolutionize the way Californians engage with sports.
4. Regulating and Taxing Sports Betting Revenue
If sports betting is legalized in California, one of the most significant factors will be how the state regulates and taxes the industry. California’s large market means that sports betting could generate significant revenue for the state, which could be used to fund public services like education, healthcare, and infrastructure.
Lawmakers will need to establish a tax structure that balances revenue generation with industry sustainability. States like New Jersey and Pennsylvania have already set successful models for tax rates and revenue allocation, providing a blueprint for California.
5. Consumer Protection and Responsible Gambling
As sports betting becomes more prevalent, ensuring that bettors are protected and that gambling remains responsible will be crucial. California will need to implement consumer protection laws to prevent underage gambling, ensure fairness in the betting process, and offer resources for those struggling with gambling addiction.
Responsible gambling initiatives, including self-exclusion programs and betting limits, are becoming common in states with legal sports betting. These safeguards will need to be incorporated into California’s regulatory framework to ensure a safe and sustainable betting environment.
What Can Bettors Expect?
As California moves toward legalizing sports betting, bettors can expect several changes:
- Wider Access to Legal Sportsbooks: Once legalized, bettors will have access to both in-person and online sportsbooks, expanding their options and providing a more convenient and secure way to place bets.
- More Sports to Bet On: Legal sportsbooks will offer a variety of sports to bet on, from major leagues like the NFL, NBA, and MLB to niche markets like eSports and college sports. Bettors will have more opportunities to place wagers on their favorite teams and events.
- Promotions and Bonuses: Legal sportsbooks often offer sign-up bonuses and ongoing promotions to attract bettors. Californians will likely see competitive odds and incentives from licensed sportsbooks.
Conclusion
The future of California sports betting is uncertain but promising. While the state has not yet legalized sports betting, ongoing legislative efforts and the growing push from both tribal interests and commercial operators indicate that California will eventually join the growing list of states with legal sports betting markets. Once legalized, bettors can expect a wide range of options, from online sportsbooks to in-person betting at tribal casinos, as well as significant benefits for the state’s economy and consumer protections. For now, Californians will need to stay informed and be patient as the legal landscape continues to evolve.
