California government authorized the collection of signatures for gambling initiative

The new initiative legalizes online and in-person sports wagering and other new types of gambling.

US.- Secretary of State of California, Shirley N. Weber has announced that the proponent of a new initiative was cleared to begin collecting petition signatures on January 2, 2024.

The Attorney General prepares the legal title and summary that is required to appear on initiative petitions. When the official language is complete, the Attorney General will forward it to the proponent and to the Secretary of State, and the initiative may be circulated for signatures.

The Secretary of State then provides a calendar of deadlines to the proponent and to county elections officials. The Attorney General’s official title and summary for the measure is as follows:

“LEGALIZES ONLINE AND IN-PERSON SPORTS WAGERING AND OTHER NEW TYPES OF GAMBLING. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Legalizes online sports wagering statewide, and in-person sports wagering, roulette, and dice games on tribal lands, all of which currently are prohibited, if operated by federally recognized Indian tribes under gaming compacts approved by Legislature, the model compact approved by this measure, or state law enacted by this measure. Prohibits sports wagering by persons under 21. Requires participating tribes to pay up to 25% of sports-wagering profits to nonparticipating tribes and up to 1% to the state for regulatory costs. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased state revenues that could reach into the tens of millions of dollars annually, depending on how the measure is implemented and legally interpreted. Some portion of these revenues would reflect a shift from other existing state and local revenues. Increased state regulatory costs, potentially in the low- to mid-tens of millions of dollars annually. Some or all of these costs would be offset by the increased revenue or reimbursements to the state.”

The Secretary of State has designated tracking number 1972 for this measure, while the Attorney General’s tracking number is 23-0030A1.

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For the initiative to qualify for the ballot, the proponent, Ryan Tyler Walz, is required to gather signatures from 874,641 registered voters, constituting eight percent of the total votes cast for the governor in the November 2022 general election. The proponent has a designated 180-day period to circulate petitions, necessitating the submission of signatures to county elections officials no later than July 1, 2024, the report said.

Amendments

Eagle1 Acquisitions Corp, backers of the proposition to bring legalized sports wagering to California, has submitted amendments to the Sports Wagering Regulation and Tribal Gaming Protection Act to the state’s Attorney General. The amendments are based on feedback Eagle1 received from tribal leadership, out-of-state operators, regulators and other stakeholders, and are part of an effort to make the proposition more appealing and beneficial to California tribes.

The amendments include:

• Income to revenue share tribes dramatically increases. Tribes receiving approximately $1m annually under current conditions can receive an estimated 15-20 times more annually under the proposition.
• Removal of two provisions identified by the tribes as problematic in order to strengthen regulatory controls and oversight.
• In-person registration for those outside of a 10-mile radius from a casino requirement for online gaming removed after two years.
• Promotional gaming credits taxed after five years.
• Improved ability for tribes to become their own affiliates.
• Inclusion of comments from land-based and out-of-state operators and regulators.

The Sports Wagering Regulation and Tribal Gaming Protection Act will regulate a previously unregulated market, put 100 per cent control of online and in-person California sports betting in the hands of tribes and provide a fair and competitive sports betting environment for Californians.

California has the potential to be the largest legalized sports betting market in the country with an estimated $60bn in wagers and revenue of $3bn annually.