California Sports Betting Initiatives Pulled Off the Table

San Francisco 49ers running back Christian McCaffrey (23) celebrates scoring a touchdown in the third quarter with fullback Kyle Juszczyk (44) and offensive tackle Colton McKivitz (68) against the Green Bay Packers during their NFC divisional playoff football game Saturday, January 20, 2024, at Levi’s Stadium in Santa Clara, California.Sponsors of two California sports betting initiatives have pulled them off the tableThe majority of California tribes were vastly against the measuresSports betting unlikely to be discussed in the state until 2026

To the surprise of very few, two California sports betting ballot initiatives have been pulled off the table by their sponsors after finding little to no support from state tribes.

The businessmen who sponsored the ballot initiatives, which would have legalized retail and online sports betting for California tribes, have decided to not attempt to collect the necessary 874,000 valid signatures to place them on the November general election ballot.

The decision came just three weeks after the California Attorney General released circulating titles and summaries for the initiatives and gave the go-ahead for signature collecting to begin.

Tribes Never in Support of Measures

Backers of the initiatives, Ryan Tyler Walz, Reeve Collins and Kasey Thompson of Eagle1 Acquisitions Corp., did not return a request for comment about their decision to abandon the initiatives.

Their decision, however, did not come as a surprise to those who have been closely following their sports betting journey. After the ballot initiatives were submitted to the state in late October, they found little support from any of the major California tribes they aimed to represent.

The initiatives were introduced to the state without input from California tribes and with no warning. Tribes were skeptical of the sports betting initiative sponsors throughout the process and clearly wanted to legalize sports betting on their own terms.

James Siva, Chairman of the California Nations Indian Gaming Association, shared a stern warning to those who would try something similar in the future.

“We are pleased that in the face of widespread tribal opposition, the backers of two initiatives have kept their word and withdrawn what we could only regard as a cynical attempt to legalize sports wagering and online betting in California. These initiatives attempted to use tribes’ good names to cleanse illegal off-shore, online gambling corporations with an appalling track record of malfeasance. Let this failure also be a warning to others that seek to dubiously enter the California gaming market. Using tribes for your own gain will get you nowhere,” he said in a statement provided to Sports Betting Dime.

The initiatives planned to give California tribes exclusive control of online and in-person sports betting in the state. Tribes would have been 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.

2026 May Offer Better Sports Betting Opportunity for California

With the repeal of the initiatives, serious California sports betting discussions will likely not take place until 2026 at the earliest. 2026 will be the next opportunity the tribes or sports betting operators will have to submit a sports betting ballot initiative to the voters for their approval.

Proponents of California sports betting will have to wait until 2026 for a chance at another sports betting ballot initiative, as regular elections are held in the state every even year.

However, following the roundly defeated sports betting initiatives in the 2022 election, it’s clear that California tribes and sports betting operators will have to come to an agreement on the best path forward for legalization. Both the tribes and operators spent millions on their campaigns, only for both initiatives to not come close to being approved by voters.

Prop 27, the “California Solutions to Homelessness and Mental Health Support Act,” only received 16.6% votes in favor of the proposition, well below the necessary 50% for legalization. Prop 27 aimed to legalize California online sports betting for operators partnered with California Tribes.

Prop 26 fared slightly better, receiving 29.9% yes votes, but again fell well short of what was needed for legalization. Prop 26, “Tribal Sports Wagering Act,” would have legalized retail sports betting for California Tribal Casinos, four state racetracks, and expanded gaming opportunities for tribal casinos.

Ironically, this year’s initiatives provided the tribes and several major sports betting operators with some common ground. The Sports Betting Alliance, which represents DraftKings, FanDuel, BetMGM, and Fanatics, publicly spoke out against the initiatives and dedicated no funding to their cause.