Peter Jackson, the CEO of Flutter, announced that a measure aiming to legalize online sports betting in California will appear on the ballot this November. This comes after the initiative, supported by Flutter's FanDuel, DraftKings, and BetMGM, collected more than the necessary 997,139 signatures. "We’re very excited about the Californian situation," Jackson stated, adding, "Clearly getting to this stage was not straightforward but we’re very, very happy to be on the ballot."
While these signatures need verification, reports suggest that this is largely a formality. If the initiative is approved by more than half of the voters, it will become law. The proposal, officially named the California Legalise Sports Betting and Revenue for Homelessness Prevention Fund Initiative (2022), designates 85% of tax revenues to combat homelessness, with sports betting subjected to a 10% tax rate.
The initiative allows online sports betting for “qualified gaming entities” and tribal operators, who may collaborate with online platform providers. Tribal operators and online platform providers must each pay a $10 million licensing fee, while “qualified gaming entities” are required to pay a hefty $100 million.
Another competing measure, the California Legalise Sports Betting Initiative, has also secured enough signatures for the ballot. Proposed by 18 Native American tribes, this alternative would permit in-person betting at tribal properties and racetracks. Jackson indicated that both initiatives could be implemented if voters approve them, allowing tribal operators to engage in retail betting and enabling both tribal and commercial operators to run online operations after paying the necessary licensing fees.
Two additional proposals from three California cities hosting cardrooms and another tribal measure permitting online betting have yet to collect sufficient signatures.
