California Attorney General Allows Sports Betting Initiatives to Move Forward to Signature Collecting

Dec 3, 2023; Inglewood, California, USA; Los Angeles Rams wide receiver Demarcus Robinson (15) celebrates with quarterback Matthew Stafford (9) and running back Kyren Williams (23) after catching a 7-yard touchdown pass in the third quarter against the Cleveland Browns at SoFi Stadium. Mandatory Credit: Kirby Lee-USA TODAY SportsThe California Attorney General has released circulating titles and summaries for two sports betting initiativesProponents of the initiatives can begin collecting the necessary 874,000 valid signatures to get the initiative on the ballotThe sports betting initiatives are not backed at all by the largest tribes in California

The California Attorney General has given the go-ahead to proponents of two sports betting ballot initiatives that aim to legalize retail and online sports betting for state tribes to begin collecting signatures, but the measures still face an uphill battle for 2024 legalization.

The major California tribes have not shown support for the initiatives and proponents may face a time crunch to collect the necessary 874,641 valid signatures to place the initiatives on the state’s 2024 general election ballot.

To ensure enough time is necessary to validate the signatures, the state suggests ballot initiative proponents submit their signatures for verification by late April, leaving proponents with just over a little more than four months for the task.

Circulating Titles and Summaries Released

The California Attorney General released the circulating titles and summaries for the ballots initiatives earlier this week. The AG office approved the following title and summary for initiative 23-0030-A1, the more substantive of the two initiatives:

LEGALIZES ONLINE AND IN-PERSON SPORTS WAGERING AND OTHER NEW TYPES OF GAMBLING. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Legalizes online sports wagering statewide, and in-person sports wagering, roulette, and dice games on tribal lands, all of which currently are prohibited, if operated by federally recognized Indian tribes under gaming compacts approved by Legislature, the model compact approved by this measure, or state law enacted by this measure. Prohibits sports wagering by persons under 21. Requires participating tribes to pay up to 25% of sports-wagering profits to nonparticipating tribes and up to 1% to the state for regulatory costs. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state revenues that could reach into the tens of millions of dollars annually, depending on how the measure is implemented and legally interpreted. Some portion of these revenues would reflect a shift from other existing state and local revenues. Increased state regulatory costs, potentially in the low- to mid-tens of millions of dollars annually. Some or all of these costs would be offset by the increased revenue or reimbursements to the state.

Backers of the initiatives, Ryan Tyler Walz, Reeve Collins and Kasey Thompson, will now likely move into the signature collecting portion of the initiative process. To appear on the state’s November 2024 general election ballot, the proponents will have to collect 874,641 valid signatures in support of the initiative.

The state suggests submitting signatures for validation by April 23 at the latest and at least six months to collect the necessary signatures. Proponents will have just a little over four months to collect the necessary signatures.

The initiative aims to give California tribes exclusive control of online and in-person sports betting in the state. Tribes will be required to contribute 25% of the adjusted sports betting gross gaming revenue into a tribal sports wagering revenue sharing trust trust and 1% to the state to handle legislative costs related to sports betting.

Additionally, the initiatives were amended to move the proposed sports betting start date to no earlier than July 1, 2025, up from Sept. 1, 2025.

Tribes Not in Favor of Sports Betting Initiatives

Since the ballot initiatives were submitted to the state in late October, they have not found much support from any of the major California tribes they aim to represent.

California tribal leaders are not interested in supporting the two sports betting ballot initiatives that aim to legalize retail and online sports betting for state tribes, while prohibiting retail and online sports betting for any other entity.

“The disingenuous nature of these initiatives should be a red flag to every tribal government as well as every voter in California,” said California Nations Indian Gaming Association (CNIGA) Chairman James Siva in a released statement. “The proponent of the measures are attempting to divide and conquer tribes by pushing an initiative that attempts to legitimize illicit off-shore operators and putting our governments at risk.”

CNIGA has voted against the initiatives, and their amendments, at just about every turn.

In December, a letter was sent to the backers of the initiatives, urging them to pull the proposals.

“Your initiatives are a cynical and deceptive attempt to hijack – for your personal gain – the goodwill tribes have earned and maintained for decades with the people of California. According to your own media interviews, these ballot measures are designed to cleanse illegal off-shore online gambling corporations with an appalling track record of illegal gambling, money laundering and other illicit activities. We will not allow imposters to exploit our good names. An aggressive campaign will be waged against these reckless initiatives – like in 2022 which resulted in an 82% NO vote – that harm potential legitimate efforts to authorize sports wagering responsibly in California,” a portion of the letter reads.

While there are several smaller tribes that seem to support the initiative, the majority of the major tribal players in the state do not support the measures.