California moves closer to legal sports betting

Californians look like they will finally be able to access legal sports betting, following a proposal by the Sports Betting Alliance (SBA), which would see them work directly with the state’s tribes. 

California’s Sports Betting Alliance, which is made up of DraftKings, FanDuel, BetMGM and Fanatics), presented a plan to the Indian Gaming Tradeshow & Convention, which would see the 109 tribes form a coalition that would work with the authorities to bring legal wagering to the Golden State. 

This deal, while allowing the SBA books to operate in California, leaves other operators like Hard Rock, Caesars and ESPN Bet in the lurch and with a clouded future, although we expect a concerted push by other betting operators to enter this US state’s legal industry. 

Caesars is in the unique position of already having a relationship with a tribe via their Harrah’s ventures in Southern and Northern California, which makes their potential exclusion from a SBA-lead sports betting industry almost unthinkable. 

If the amalgamated tribe choose to go with the SBA, the members would be going head-to-head with each other, for a share of the Californian sports betting market, which has been estimated to be as worth as much as $3billion annually, after it matures.

Under the proposal legal sports betting in California would be rolled out sometime in 2026, although as we have seen in other states, after the red tape is cleared it can happen quickly and efficiently, with most gambling companies having the technology and websites ready to roll out. 

The legalisation of sports betting in the USA has been happening since 2018, with the overturning of PASPA (Professional and Amateur Sports Protection Act) in 2018 by the US Supreme Court, which allowed states to legalize and regulate it.

Now over 30 US states have legalized US sports betting and the industry has experienced rapid growth, with billions in turnover happening across the country, and it providing a huge financial windfall to various state governments, sports broadcasters, leagues and teams.

The most popular sports to bet on in the USA include the NBA, NFL, Major League Baseball and various college sports, although betting on the latter can be restricted in some states.

As it stands, many Californians bet with offshore online sportsbooks, like BetOnline, with regulating the local industry appearing the only way to stamp out these illegal operators.