SBC North America Summit Delivers Insight Into California Sports Betting Status in 2022

At the recent SBC North America Summit held at the Meadowlands Exposition Center in Secaucus, N.J., elite members of the U.S. gambling industry came together to discuss the goings-on within the industry. Among the major topics of discussion was the state of sports gambling in California and the current status of sports betting in states like Ohio and New York.

Battle Lines Drawn in California

Sports betting legislation in California has been slow to take hold. A big reason why Californians are not sure when their legislature is going to get something done is the battle that is ensuing between the state's Indian Tribes and commercial gambling interests.

The battle for the right to control sports betting in the state is reaching a fever pitch. At the SBC Summit, Richard Schuetz, formerly a commissioner for the California Gambling Control Commission, indicated he was expecting a fierce battle between the aforementioned interested parties. This isn't a battle that will be waged with conventional weapons. The weapon of choice figures to be ballot initiatives in the November 2022 mid-term election.

According to Schuetz, “It’s going to be a bloodletting — I would guess about $200 million would be spent in this election [on sports betting issues]. California is the prize; it’s just really complicated.”

He is absolutely correct. There is a lot at stake. The state has the two main components to drive sports betting handle and revenue through the stratosphere. First, the state is home to over 39 million residents, many of whom have discretionary income to spend on entertainment. The other component is the state has 17 major professional sports franchises and dozens of NCAA sports teams.

Anyone who doubts the desire of Californians to gamble only has to look at the history of Las Vegas, Reno, and Lake Tahoe. Those great Nevada gambling cities weren't built out of the pockets of Nevada residents. It was California gamblers who made those cities what they are today.

While California residents are expecting to see at least two sports betting initiatives on the 2022 ballot, there are concerns that the fight might wear on residents and voters. If that were to happen, the net sum gain might end up being no sports betting for California sports bettors. Everyone would end up losing.

As of now, it looks like the state's Indian Tribes have the upper hand. It's no small thing that Tribal interests have had a hammerlock on casino gambling in the state for decades. During that time, the Tribe's people have been able to build strong relationships with communities that surround Indian lands. It is estimated that 75% of the employees working in Tribe-owned casinos are not Tribe members.

On the other side of the fight sits the state's card room and race track owners. They are likely to draw financial support from top U.S. bookmakers like DraftKings and Fanduel.

Election day is less than a year away. However, the initiatives are being drawn, sides are being taken, signatures are being gathered, and the battle has ensued.