Sports betting in the U.S. is legal in all but 12 states, with California being one that continues to hold out. As well as continuing to prohibit sports betting in the state, online casinos are also not permitted, forcing consumers to look elsewhere.
Betting expert Sergio Zammit describes the benefits of offshore betting facilities that U.S. bettors can access. A wide variety of sports betting markets and top-ranked poker websites can be accessed by those in restrictive jurisdictions without breaking the law.
The U.S. online gambling market is worth billions of dollars to the national economy every year. The figure is projected to exceed $23 billion in 2024, with gambling states set to rake in millions in taxes and license fees.
The finances associated with the online sports and casino betting markets are the major incentive for states to push through legislation. Arguments against legalization are also undermined by the offshore betting market.
Access to betting sites licensed in external jurisdictions means that consumers in prohibited states will still gamble. The main difference is that money is lost from the state and U.S. economies.
States that have pushed through legislation to allow betting can have greater control over operators and invest revenue back into community and education programs.
Attempts to legalize sports betting in the state have previously failed. A recent proposal would have seen tribes involved putting 15% of their GGR (gross gaming revenue) into a trust fund and 10% towards a fund to tackle mental health and homelessness.
The proposal failed after the California Nations Indian Gaming Association (CNIGA) raised concerns that they weren’t consulted. The IGA (Indian Gaming Association) executive director Jason Giles identifies the importance of including tribes in any future proposals.
The next opportunity will come in 2026 and the 2027 Super Bowl is being used as a target due to it being held in Los Angeles. Learning from previous mistakes and ensuring all the necessary support is in place before pushing ahead will be important to the success of future proposals.
At present, only pari-mutuel betting, commercial cardrooms, the California state lottery, and tribal casinos are available for Californian consumers. The American Gaming Association values California’s betting industry at $34.56 billion with almost 185,000 jobs being supported by it.
These figures could be increased significantly by an online betting industry and the funds exiting the state to offshore, non-Gamstop casinos could remain with Californian businesses. From a purely regulatory viewpoint, legalization and the implementation of a regulatory framework would offer far greater protection to its citizens.
Future proposals will hinge on including tribes in early discussions and coming up with proposals that suit all parties. The popularity of online betting is on the rise as mobile devices, connectivity, and site quality continue to improve.
California’s decision to ignore the benefits of legalization has so far cost them millions of dollars in revenue, law-makers will be keen to find a resolution before more is lost.
