Nearly two dozen California tribes said late Wednesday that they are backing a statewide ballot referendum that would legalize sports betting at casinos and racetracks in the nation’s largest Indian gaming state.
In a statement, tribal leaders said the proposed constitutional amendment would appear on the November 2020 ballot and would allow limited sports wagering at authorized locations, including Indian casinos and licensed racetracks.
Included among the provisions in the amendment are a 10% tax on gross gaming revenues from sports wagering that would be directed toward public safety, mental health programs, education, and regulatory costs.
Mark Macarro, Tribal Chairman of the Pechanga Band of Luiseno Indians
Wagering would be permitted on professional, college, or amateur sporting events, but the amendment would prohibit wagering on sporting events involving California colleges, as well as high school events.
The proposal did not have any mention of mobile wagering and requires bettors to be physically present to place sports wagers.
“Californians should have the choice to participate in sports wagering at highly regulated, safe, and experienced gaming locations,” Tribal Chairman Mark Macarro of Southern California’s Pechanga Band of Luiseño Indians said in a statement. “We are very proud to see tribes from across California come together for this effort, which represents an incremental but important step toward giving Californians the freedom to participate in this new activity in a responsible manner.”
Last week, Colorado became the 19th state to legalize sports wagering since the U.S. Supreme Court ruling May 2018 that opened the U.S. to regulated sports gambling. Currently, legal sports wagering is offered in casinos and racetracks in 13 states. The other six states and the District of Columbia are still considering regulations before the activity can go live.
Indian casinos in Mississippi and New Mexico legalized sports betting under compacts with their respective states.
Steve Stallings, chairman of the California Nations Indian Gaming Association, said the initiative was “the best example of well-written and responsible sports betting policy presented to date.”
California is the nation’s largest Indian gaming state, producing more the $8.4 billion in casino revenues in 2016, according to the Casino City Indian Gaming Industry Report from California economist Alan Meister.
“A strong, well-regulated gaming industry is of utmost importance to California’s tribal governments and the public,” Stallings said. “This initiative allows sports wagering in a responsible manner and provides for transparency and strict regulation.”
Some 18 tribes throughout the state were listed as “public supporters” of the measure. Tribal leaders hope other tribes will join the coalition. Indian tribes, horse race tracks and cardroom casinos, which don’t offer slot machines, have long been at odds on how to expand California’s gaming market.
The statement from tribes did not mention card room casinos, while none of the state’s racetracks were listed as supporters. Also, the bill would allow Indian casinos in the state to offer craps and roulette.
“We have historically been opposed to the expansion of gaming in California beyond the current scope,” Tribal Chairman Anthony Roberts of the Yocha Dehe Wintun Nation said in a statement. “This initiative represents a viable and measured path that provides Californians with the opportunity to wager on sports in a manner that is responsible and provides for real enforcement penalties for unlawful gambling in the state.”
In June, a pair of state lawmakers introduced a sports betting bill in the in California Legislature, but the measure was not acted upon.
#exclusive – California tribes propose 2020 ballot measure to legalize sports betting. –@howardstutz, CDC Gaming Reports. https://t.co/qp5vNT9PWC #CDCgaming
— CDC Gaming Reports (@CDCNewswire) November 14, 2019
The potential lucrative sports betting market in California – home to more than a dozen teams in the four major professional sports leagues – would attract interest from some of the major sports betting operators.
Tribal Chairman Cody Martinez of the Sycuan Band of the Kumeyaay Nation said the “well-designed measure ensures responsible sports wagering by introducing important safeguards that protect consumers.”
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
