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California is the fifth largest economy in the world — if you carved it out of the US — but is still in the 20th Century regarding gambling regulation.
With a projected first-year tax revenue of $100 million, one would think that California would want to have Sports Betting legalized as quickly as possible. But…it could be at least five years, if not longer, before Sports Betting is legalized in the state.
Much of the problem is the lack of understanding of the territory, and how the stakeholders interact with each other and the state government. Hopefully this article will clear some of the smoke from the room.
As this is the second industry this decade that has flipped from illegal to regulated, California already has some experience in that regard. I’ll try to decipher here what the issues are, in the hope that better understanding of those issues will help get to a win/win for all parties involved as efficiently as possible.
The lay of the land for California Sports Betting
Current stakeholders in CA gaming include these three entities:
How they all intersect
As one would expect, the three stakeholders don’t like each other.
The real stakeholders, of course, are the people of California, who would likely see tax revenues approaching $100 million in the first year of operation, and upwards of that as the market matures.
However, the CA state budget is about $180 billion a year, so everything is relative. One would think there’s enough money to go around this time, which wasn’t the case with online poker, which a minority of California tribes managed to defeat in the legislature over a nine-year (and counting) period.
California is the fifth largest economy in the world — if you carved it out of the US — but is still in the 20th Century regarding gambling regulation.
With a projected first-year tax revenue of $100 million, one would think that California would want to have Sports Betting legalized as quickly as possible. But…it could be at least five years, if not longer, before Sports Betting is legalized in the state.
Much of the problem is the lack of understanding of the territory, and how the stakeholders interact with each other and the state government. Hopefully this article will clear some of the smoke from the room.
As this is the second industry this decade that has flipped from illegal to regulated, California already has some experience in that regard. I’ll try to decipher here what the issues are, in the hope that better understanding of those issues will help get to a win/win for all parties involved as efficiently as possible.
The lay of the land for California Sports Betting
Current stakeholders in CA gaming include these three entities:
- Cardrooms
- Tribes
- Horse racing tracks
How they all intersect
As one would expect, the three stakeholders don’t like each other.
The real stakeholders, of course, are the people of California, who would likely see tax revenues approaching $100 million in the first year of operation, and upwards of that as the market matures.
However, the CA state budget is about $180 billion a year, so everything is relative. One would think there’s enough money to go around this time, which wasn’t the case with online poker, which a minority of California tribes managed to defeat in the legislature over a nine-year (and counting) period.
