California Tribal Group Withdraws Mobile Sports Betting Measure from November Ballot

Cali voters now have just two sports betting options in November

by - Thursday, May 12th, 2022 7:13

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The tribal coalition behind a California mobile sports betting initiative has announced that it will no longer try to have its ballot measure put on the November ballot. The group has instead opted to wait until the 2024 election season to push through its initiative.
The group will instead wait until the 2024 election season

The coalition comprising the San Manuel Band of Mission Indians, Rincon Band of Luiseno Indians and Wilton Rancheria filed the initiative last November. However, to qualify for this year’s election ballot the group would have needed to submit supporting signatures by this week.

The tribes had initially filed their initiative as a result of the mobile sports betting measure proposed by sportsbook operators including FanDuel and DraftKings. However, the recent decline in public support for out-of-state commercial companies having a controlling interest in the regulated market has led the tribes to believe that there is an easier path to victory in 2024.

Two choices for California voters

As a result of the withdrawal of the tribal mobile measure, the November ballot will see voters have just two sports betting options to choose from as opposed to the four that looked like a possibility just a few short months ago.

The two are:

  • A measure backed by Native American tribes that would see in-person sports betting at tribal casinos and horse racetracks
  • A measure backed by sportsbook operators that would see mobile sports wagering launch in the state through partnerships with Indian tribes

The tribal initiative has already qualified for the November ballot while the mobile initiative backed by commercial interests looks certain to be added following the submission of 1.6 million signatures, 600,000 more than required.

The tribal initiative for retail sports betting also includes provisions for the launch of previously unauthorized table games such as craps and roulette. It also sets out a tax rate of 10% on sports betting that horse tracks must pay and that tribal casino will pay despite the fact that they are not legally required to do so.

Meanwhile, the commercial sports betting initiative would hand control of the market to sports betting operators. They would need to partner with local tribes to gain market access but this is problematic for the tribes as the proposal suggests a $100 million upfront licensing fee. There is also a stipulation that tribes can only choose to partner with major sports betting operators that are operational in at least 10 states. This means that the market would be controlled by large sports betting operators.

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.