With 40 million people, another 40+ million annual tourists and more professional sports teams than any other state, California would be a gold rush for legal sports wagering in the US.

Penal Code 330 PC is the California statute that makes it a crime for a person to gamble in a “banking” or “percentage” game.A conviction is a misdemeanor that carries a penalty of up to 6 months in jail and a fine of up to $1000.00.A banking. Game is one where there is a “house” or “bank” that participates in the game.

Two attempts are ongoing to legalize sports betting in California. A proposed tribal initiative would legalize sports wagering at land-based Indian casinos and horse racing tracks. A legislative effort would also authorize online and mobile wagering through platforms affiliated with the tribal casinos and racetracks.

Gambling

Both CA sports betting efforts have until June 25 to qualify for the ballot. The legalization of sports betting in California requires a constitutional amendment approved by voters.

  1. Charitable Gaming License Applications and Reports How to Apply For a Charitable Gaming License. To qualify for a gaming license, charitable organizations must: be exempt from paying federal income tax, and; have held tax-exempt status for a period of at least one year,.
  2. Minimum Gambling Age. Indian Casinos: The legal age to gamble in a California Indian casino is 18 years or older. However, most Indian casinos serve alcohol and have set the minimum age to 21 to comply with their state-issued alcohol license.

The future of California sports betting

There’s a building pressure to legalize sports betting in California. With a budget deficit of$54 billion as a result of economic impacts from the coronavirus, California can use all new revenue sources to lessen cuts in important areas.

Eilers & Krejcik projects that CA sports betting under the legislative amendment would produce $503 million in revenue for the state at market maturity. The firm projected $282 million in the first six months including initial license fees.

But like all gambling issues in California, hostility between the tribes and cardrooms makes it difficult to make any progress.

Ironically, the legislative effort is opposed by the tribes, which would get top billing for offering California sports betting, and supported by the cardrooms, which would be locked out of CA sports betting all together.

This is because SCA 6 and ACA 16 would also allow cardrooms to continue their workaround for offering house-banked card games as consolation for giving up sports betting in California.

To reach the ballot, the legislative referendum needs approval from two-thirds of members in each chamber before lawmakers go on summer recess on June 19.

Tribes also haven’t given up on their own initiative, which seemed on the way to gathering enough valid signatures to make the ballot before the coronavirus shut down signature gathering. Although the deadline to submit signatures for count has passed, the tribes plan to challenge the deadline by legal means.

California Gambling Permit

There’s the possibility of both making the ballot, though the better odds are on neither. Measures on the ballot in November must pass by majority vote.

If neither make the ballot, Californians will need to wait for the next election in 2022 for another run at a constitutional amendment.

When will online sports betting launch in California?

If the legislative effort is successful this year, online sports betting is likely to begin in California by the end of 2021 or early in 2022.

If the tribal initiative passes, sports betting will start without online wagering. After a few years, the tribes may reassess and pursue online sports betting in California.

However, a tribal leader at a June 2020 hearing spoke of tribal concerns about online wagering’s cannibalization of their brick-and-mortar investments.

Without online wagering, Eilers & Krejcik projects state revenue from sports betting to shrink to $200 million a year.

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