Will Online Sports Betting in California Ever Become Legal?
While a small but growing number of states in the US have begun to offer sports betting to residents via fully licensed land-based and online operators, California remains resolutely opposed to legalization of this globally popular pastime.
So is there a possibility that web-based sports betting will eventually be given the green light in California, or is it a lost cause?
Current state of play
Unpicking the complex issue of sports betting’s legality in California can be tricky, as there is a degree of ambiguity involved.
As explained in detail here in a sports betting California guide, while there is some will among politicians and lawmakers to legalize this practice state-wide, certain factions are still entirely opposed to the idea, creating something of a stalemate.
The issue is further muddied by the fact that some forms of pseudo-gambling, including fantasy sports leagues, are not explicitly banned, yet carry similar hallmarks to sports betting, which could allow for a gateway to legitimization and regulation.
Furthermore there are exceptions; casinos and sportsbooks operating on tribal land within the state were given the green light to operate legally over two decades ago, and horse racing has been legal since the 1930s, although betting is only permitted on the premises of race courses, rather than online.
Add to this the 2018 decision made by the Supreme Court which effectively gave states the go-ahead to embrace sports betting, and California’s current regulations start to look decidedly outdated.
Experts estimate that Americans collectively wager $150 billion annually via betting services which are technically illegal, or at the very least not officially licensed in their state or region. This represents a huge chunk of money that is not being taxed, leaving states out of pocket and also preventing players from accessing the protections they would be afforded by fully sanctioned online sports betting.
Future prospects for legalization
Based on the fairly regular attempts made to change the law on sports betting in California, including one made most recently in mid-2020, there is obviously a degree of enthusiasm in some camps of the state government to see this form of entertainment brought out of the darkness and into the light.
The aforementioned rights held by tribal land owners to run casino and sports betting on their reservations are also proving to be a sticking point. If online sports betting across a range of sports was adopted state-wide, rather than in these specific areas, then the impact on tribal economies would be huge; or at least, this is the argument.
As we speak, a petition that pushes to approve sports betting for legalization and regulation in California is once again making its way through various government offices. Whether or not this will succeed where its forebears have failed is uncertain.
It all comes down to whether or not there is enough unified political will to push through such a bill, and a host of factors are involved in determining this. The economic advantages that would come with legalizing online sports betting, with tax revenues sure to spike as a result, have to be weighed against the moral and ethical objections that certain people have to gambling itself.
This leaves California’s residents in a state of uncertain limbo. At this point, while it seems like sports betting will eventually be legalized in some form, when this will happen and whether or not it will include online services or strictly be limited to land-based venues remains to be seen. It may be frustrating, but this is the reality of the way that the political machine works, especially when such a large and divisive issue is up for debate.
Interim options
In spite of California’s reticence with regards to legalizing online sports betting, citizens of the state do have a few ways to place bets and enjoy other forms of gambling in the meantime.
For a lot of people, visiting Vegas across the border in Nevada is their first port of call for accessing games of chance in an entirely above-board way. Likewise the betting options at tribal reservations and horse racing tracks can help you scratch this particular itch.
In terms of online sports betting, there are sites hosted overseas which cater to American customers, although since this is not officially supported or regulated, it is a bit of a risky business using them.
Ultimately it seems like patience is needed by Californian fans of sports betting. It could be a year or two before clarity on this issue is provided, but as more states choose to legalize online gambling, California’s hand may be forced.