(Updated June 3, 2020)
On May 28, Senator Bill Dodd and Assemblyman Adam Gray introduced a revised legislative initiative in California to legalize and tax sports betting by tribes and private horse racing operators, authorize craps and roulette for tribes, and to clarify the laws on card games for card rooms. https://leginfo.legislature.ca.gov/
The revised initiative is in response to the State’s fiscal crises, and a tribal initiative which did not qualify for the November ballot, but which would have legalized only in person sports wagering by tribal casinos and race tracks, with only the tracks paying tax at a 10% rate.
The principle differences between the tribal initiative and the legislative initiative are:
- The legislative initiative would legalize internet/mobile sports betting, which represents about 85% of the New Jersey market.
- The legislative initiative imposes a 15% tax rate on online sports betting by tracks and tribal online platforms, and 10% on in person betting at the tracks.
- The legislative initiative would resolve on-going disputes between the tribes and cardrooms over cardroom table games where players wager against each other rather than against the casino.
- There is a $5 million initial licensing fee and $1 million annual fee for online wagering platforms. Licensees would pay 1% of revenue for problem gambling programs.
Many tribes oppose the initiative because it authorizes mobile betting, because of the tax provisions, and because they are opposed to any compromise with the cardrooms.
The first test for the legislative initiative came on June 2, when the Senate Governmental Organization Committee chaired by Bill Dodd voted to approve the initiative 9-3, with the assurance that the authors will continue to work with all parties on the provisions. The initiative now goes to the Senate Appropriations Committee for a hearing on June 9. The Legislature can place this initiative on the November ballot with a 2/3rds vote in each house.
