Californians Toy with the Idea of Land-Based Sports Betting, But Not Online

Californians might finally be ready to accept that sports betting is part of everyday life, but there is one significant rub – the interactive wagering industry is still a no-go, with most state residents apparently opposed to legalizing iGaming and online sportsbooks. Californians Are Opening Up to the Idea of Legalizing Sports Betting According to a Citrin-POLITICO poll, half of registered voters in California are willing to accept regulated sports betting, provided that it does not leave the confines of tribal casinos and any sportsbooks physically located there. However, the idea of interactive gambling is not entirely foreign to state residents, with 37% suggesting that they would vote in favor of internet sports wagering in the Golden State were it to be put forward. This is good news for Californian tribes, who would be able to expand their operational reach and generate fresh revenue, all while retaining their exclusivity over much of the state’s gaming business. So far, though, tribes have held a dim view of attempts to legalize sports betting, pushing back against Propositions 26 and 27, which were rejected by voters before. The tribes themselves also want to ensure that they do not lose revenue resulting from any legalization framework, insisting that they have a significant stake in the race. The Elephant in the Room: What About Online Sports Betting? With voters clearly alright with the idea of the tribes running businesses from physical locations, this could be the moment for local operators to push forward with the proposal. But there are drawbacks as well. While tribes would secure the market, they would also be losing money on internet sports betting, which is by far the absolute favorite, with 95% of the traffic in states where both land-based and online sports betting are available filtered through interactive apps. The recent turn in voter sentiment suggests that California may not dodge the issue any longer, and with tribes now getting a tentative approval from the public, they may be even more determined to forge ahead with the idea of legalizing sports gambling. It is not clear if private companies such as DraftKings and FanDuel would get a slice of the California race, but they may object to a model where the tribes retain exclusivity, and they cannot run their business locally if sports betting is legalized.