Sports betting in the United States has rapidly expanded since the federal ban was lifted in 2018. States like New York, New Jersey, and Nevada have embraced it and reaped economic benefits. However, California, the most populous state in the U.S., remains on the outside looking in. Despite massive public interest and significant financial potential, California sports betting has yet to become a reality.
This article explores the reasons for the delay, the legislative challenges, and what the future could hold for sports wagering in the Golden State.
Current Status of Sports Betting in California
As of now, sports betting is not legal in California. No online or in-person sportsbooks operate legally in the state. Although residents can legally participate in other forms of gambling—such as tribal casino gaming, poker, and horse racing—sports betting has yet to be added to the list of permitted activities.
The last significant attempt to legalize it came during the 2022 election when two propositions were placed on the ballot. Both were defeated by voters.
Why Previous Legalization Efforts Failed
Two major proposals were presented to voters in 2022:
- Proposition 26: Backed by tribal casino operators, this initiative would have allowed in-person sports betting at tribal casinos and select racetracks.
- Proposition 27: Supported by major online betting companies, this would have legalized online and mobile sports betting statewide.
Both propositions failed, largely due to competing interests, confusing messaging, and record-breaking campaign spending. Voters were overwhelmed and uncertain, leading to a strong rejection of both measures.
Key Stakeholders in the Legalization Debate
Several powerful groups are shaping the future of sports betting in California:
- Native American Tribes: They currently have exclusive rights to casino gaming in the state and want to protect their interests.
- Commercial Sportsbooks: Companies like DraftKings and FanDuel are eager to enter the California market, especially through mobile apps.
- State Government: Lawmakers are caught in the middle, trying to balance competing interests while exploring ways to increase tax revenue.
The path to legalization likely hinges on creating a compromise that respects tribal sovereignty while embracing modern, digital solutions.
The Economic Potential of Legal Sports Betting
Legal sports betting in California could generate substantial economic benefits. Experts estimate that the state could see:
- Over $3 billion in annual betting handle
- More than $500 million in potential tax revenue
- Thousands of new jobs related to technology, customer service, compliance, and marketing
Given the state’s budget pressures, these numbers make a strong case for legalization.
What Legal Sports Betting Could Look Like in California
When California finally legalizes sports betting, the structure will depend on the compromise between tribes and commercial interests. A possible model might include:
- Retail sportsbooks at tribal casinos
- Mobile betting apps regulated by the state
- Taxation on gross gaming revenue
- Consumer protection and responsible gambling regulations
Such a framework would ensure wide accessibility while maintaining regulatory oversight.
Is Daily Fantasy Sports Legal in California?
Yes. While sports betting is currently illegal, Daily Fantasy Sports (DFS) platforms like FanDuel and DraftKings operate legally in California. Residents can participate in fantasy contests involving individual player statistics and outcomes. These games are considered skill-based and fall into a legal gray area that has not been actively challenged by the state.
How Californians Are Betting Despite the Ban
Even though sports betting is illegal in California, many residents are still placing bets through:
- Offshore sportsbooks that are not regulated or taxed
- Bookmakers operating in legal states through VPN or travel
- Informal betting pools among friends or coworkers
These methods are risky and unprotected. Until betting is legal and regulated, consumers remain vulnerable to scams and fraud.
What to Expect Next in California
The next opportunity to legalize sports betting in California could come as early as the 2026 election. However, this depends on whether tribes and commercial operators can come together to propose a unified, voter-friendly initiative.
If no agreement is reached, the stalemate may continue, leaving California far behind other states in this industry.
Conclusion: A Waiting Game with High Stakes
California’s journey to legal sports betting is long and complicated. Despite widespread public interest and economic incentives, political obstacles remain. The state has the potential to become the largest sports betting market in the U.S., but only if stakeholders find common ground.
For now, fans and bettors in California must wait. But when the laws do change, the market is likely to explode with opportunity.