California to Sanction Legalized Sports Betting if New Jersey Wins Their Case
Assembly member Adam Gray announced the introduction of a constitutional amendment recently that would authorize sports wagering in California. The amendment would take effect if federal law changes to allow sports betting. The likelihood of federal law changing has increased greatly with the New Jersey sports betting case heading to the US Supreme Court in October. Gray chairs the Assembly Governmental Organization Committee. He said in a press release that the Supreme Court case was the impetus for the legislation.
“I am pleased to see the US Supreme Court has shouldered the burden of bringing legal clarity to the issue of sports wagering and the rights of states under the United States Constitution,” Gray said.
The Professional and Amateur Sports Protection Act, or PASPA, prohibits single-game sports betting outside of Nevada. California is the latest in a series of states to consider legalization of sports betting in the past year. Connecticut and Mississippi have taken steps toward attempting to regulate sports wagering in 2017. California will sanction legal sports betting if New Jersey wins their case.
“Whether we like it or not, Californians are already betting on sports through illegal and often unscrupulous websites in foreign countries,” Gray said. “It is time to bring this multi-billion dollar industry out of the shadows. We need to crack down on illegal and unregulated online gaming and replace it with a safe and responsible option which includes safeguards against compulsive and underage gambling, money laundering, and fraud. “All other gaming activities in California are subject to regulations that ensure the safety of consumers. Sports wagering should be treated no differently.”
What kind of chances does California have of passing a sports betting amendment? If the amendment gets to the voters of California, it has a good chance of becoming law.
However, to get on the ballot as a referendum issue in California, the state legislature must first approve it by a two-thirds majority. Gaming issues have been a slippery slope for lawmakers to climb in recent years. California has been considering online poker for nearly a decade, behind the efforts of Gray. But the various gaming interests — tribal casinos, card rooms and racetracks — have had a difficult time getting on the same page. They will realize that online poker does coincide with the card rooms to feed off each other with a physical presence and its cyberspace component.
Sports betting comes from a different starting point. It should be easier for all gaming stakeholders in California to agree to have equal access to the sports betting market whether at physical sites or online. The potential huge market can satisfy any format that is legal for the public. Why not reap the benefits of a legalized tax paying structure instead of the illegal underground local bookies and the off-shore entities. That would seemingly give the legislature a fighting chance to advance the proposed amendment. The potential of a California sports betting market is beyond any other state like Nevada. California is the largest state in the nation. It has a population of 40 million and features a robust gaming industry already.
Land-based sports betting would be a massive draw for current operators in the state. California’s tracks, in particular, would certainly benefit from the boost from legal sports betting.
Because of past arguments over online poker, it seems unlikely everyone would buy into an online sports betting system right away. For comparison’s sake, Nevada is obviously a much smaller state with much more gaming tourism. Nevada sports betting generated $4.5 billion in handle in 2016, and $219 million in revenue. A lot of that revenue comes from the pockets of California residents who visit Las Vegas more than once a year. By simulating and copying what Vegas does so well will make sense to state lawmakers whose job is to serve its constituents and keep revenue in the state. Maybe the federal lawmakers in DC will get their heads out of the sand and allow states their own decisions.
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