California Sets Itself to Become US Sports Betting Capital

Move over New Jersey! California is set to become sports betting capital of the United States.

Once an unthinkable taboo topic in the Golden State, facing an estimated $54 billion deficit in the State Budget on the back of the global pandemic, a California Senate committee moved sports betting legislation in the state this week.

The partisan 9-3 vote helped to pass a state constitutional amendment bill to legalize sports wagering in California. All of the Senate Democrats voted in favor of the sports betting legalization bill, while all Republicans voted against it.

With California desperate to find ways to act on generating much-needed revenue, clearly the state has been watching closely the revenue numbers coming in from legalized sports betting states.

Sports betting is not the quick fix of all the state’s economic ills, but it sure can help. California’s millions of sports betting fans are watching developments with bated breath.

California now appears set to become the biggest crown jewel for U.S. sports betting. The Golden State boasts a population of 39.5 million people (as at 2019), the world’s 8^th largest economy (ahead of many national economies) and has an amazing 16 pro teams from the four major sports leagues (NHL, NBA, NFL & MLB) in their state, not to mention untold nationally-ranked college teams for sports wagering enthusiasts to bet on.

When Can we Expect More Action on CA Sports Betting?

A hearing is scheduled for June 9 on the historic Bill SCA-6 that was originally introduced by Senator Bill Dodd in June 2019. The California sports betting bill has been two years in the pipeline after the U.S. Supreme Court struck down the Federal ban on sports betting, and handed control of the past time back to the states.

First up, both chambers of the California Congress will need a two-thirds vote to pass the sports betting bill. If that succeeds, the bill will then require a majority vote by state-wide voters in a November referendum.

The California Senate will meet again on June 9 to start thrashing out the details of the new sports betting bill and the fine print.

What Are the Details of the CA Sports Betting Bill to Date?

California sports wagering appears set to be taxed at 10% for bricks-and-mortar sports betting, and 15% for online betting. Online sports betting operators would be expected to pay a one-off $5 million license fee, in addition to an annual renewal fee of $1 million.

Tribal Casinos and the state’s largest racetracks would potentially be allowed to offer sports betting at their locations.

In addition, land-based casino gaming appears set to come along for the ride with this gambling extension bill. Casinos would potentially be permitted to offer roulette and dice games, including craps. Card rooms appear to be left out of the Californian sports betting mix, however, can possibly expect to be permitted to offer Blackjack and Texas Hold ‘Em at their private rooms as an unexpected bonus.

Budget Repair Critical to California’s Financial Future

If sports betting is legalized soon in California, the big winners will include more than sports betting enthusiasts. Schoolkids, single working moms, veterans and the aged poor will be winners too.

It is widely expected that legalized sports betting could generate at least $200 million in taxes in its first full calendar year, rising to between $500 million and $700 million annually once the legal Californian betting market reaches maturity.

As sports bill backer, Senator Bill Dodd says;

“Our state budget is being hammered. There are lots of victims. We have to find as many sources of revenue as possible. And here’s one with real money.”