In 2018, the U.S. Supreme Court removed laws that prevented online gambling and sports wagering. Since this date, 30 states and Washington, D.C., have welcomed the gambling market that was once frowned upon. As of 2022, over one hundred million American citizens reside in locations where they can legally place wagers and gamble online games without the need for an offshore sportsbook or underground bookie.  

To no surprise, business is booming. Records from 2020 saw the sports betting market return an overwhelming $1.5 billion in revenue – a 69% from 2019. During the global pandemic in 2021, revenue further grew an additional 270%, and this was before the NFL partnered with sports betting industry leaders with television ads and brand promotion. 

The build-up to the 2022 Super Bowl delivered estimations from the American Gaming Association expect $7.6 billion in legal wagers on the game, as over 30 million Americans were anticipated to place bets – each record-breaking number with a 35% and 78% rise from 2021, respectively. 

The LA Rams versus the Cincinnati Bengals could’ve played out the final Super Bowl of its manner – an NFL final played in a state where legal sports betting isn’t permitted.

Arizona, Nevada, and Louisiana will host 2023, 2024, and 2025 Super Bowl championship games, respectively. These states are within the thirty states and the District of Columbia where sports wagering is legal. United States sportsbooks received over $55 billion in bets throughout 2021, creating close to $4.4 billion in revenue. This past January, New York propelled their online betting market and received over 1 billion dollars within three weeks.  

However, despite these impressive numbers, California, America’s largest population and most significant economy and the stomping grounds of the Super Bowl final just passed, isn’t on board… yet. 

Make it Make Sense 

California is one of the planet’s most successful casino gaming industries. The 76 tribal casinos scattered throughout the Golden State generate $9 billion in annual gaming revenue. This amount is close to exceeding the world’s most famous gambling city in Nevada ($12b), so the pushback from California legislation against sports betting and online casinos has been difficult to comprehend. 

Legality in sports betting and online casino sectors would undoubtedly position California as a dominant spearhead of the market – worldwide. Of course, online casino games can be found on the few casino apps provided in California, but they’re constrained and amateur-like.

For its current gambling popularity and revenue without legalized sports betting and online gaming, it’s surprising to watch California sit back as their neighboring states are landing considerable profits in the market. 

In part, said restrictions have caused sports betting enthusiasts to leave the state of California to source a legal bookmaker. Many have driven to Nevada, Oregon, and Arizona to make use of the legalized markets. However, a significant number of California locals will simply log in to their local bookie/offshore website, as they’ve used this loophole for decades. 

Nevada Online Betting Success 

On Friday, February 25, 2022, Nevada’s Gaming Control Board released its January figures, showing a record $1.109 billion in wagered sports bets. That number was the 6th-highest since the U.S. post-PASPA era, as Nevada sat alongside New York and New Jersey as the triple threat of American states to receive over $1 billion for that month. 

As the original state to legalise sports betting in the United States, Nevada is proving to have a stronghold on the market, and seemingly better than ever. 

January saw Nevada deliver four consecutive months of betting handles that returned over $1 billion, breaking its own record previously held in October 2021. A betting handle increase of 9.3% since December and 71.5% year-to-year since January 2021. 

As a neighbouring state of Nevada but without the same legalities, California could do nothing but sit and ponder on the profits made just across the border.

Could California Learn from Arizona? 

Arizona lawmakers legalise sports betting in 2021; they achieved this by supplying 20 licences for retail and stateside digital wagering. The bill permits ten licences to pro sports franchises and ten to tribes, while an additional ten were reserved for retail-only racetracks. 

The approach was criticised initially, as most sports franchises failed to meet the criteria to use all ten licences, and there are twenty-three tribes. Resulting in two unassigned franchise licences and close to 50% of tribes unable to supply sports betting whatsoever. However, a newly instated bill (authorised by Sen. Sally Ann Gonzales) would provide all twenty-three tribes with licences. 

“The addition of licences for all tribes should have been something that was included in the original legislation but provide the short-sightedness of the bill’s authors to think tribes should not have equal standing as teams in the state,” said Brendan Bussmann, a consultant involved in the matter. “Other states with strong tribal presence should learn from the challenges that have occurred in Arizona and not try to reinvent the wheel as they look at their own sports betting regulatory structures.”  

California’s Casting Vote to Make a Difference 

On Nov.8, 2022, California voters will have the opportunity to alter their gambling scene; however, introducing sports betting to the Golden State is proving to be difficult and ultra-competitive. 

The Indian Tribal gaming operators face off against the most notable sportsbook names in the industry, alongside state card rooms, each aiming to stake their claim. From each side, millions of dollars are invested in aiding their ambitions and resistance to conflicting schemes. 

Altogether, four independent proposals have been put forward, but just three of those motions have accomplished recognition. Two of the front-running proposals would see online sports betting, and the other would regulate sports betting to live wagers at tribal casinos and horse tracks. The latter has reached the qualification stage of the ballot, whilst the former is still collecting votes. 

“California comes down to structure,” commented Chris Grove, sports betting investor for Eilers & Krejcik Gaming. “You could be looking at some pretty big swings depending on the who and how of sports betting authorization.”