California's sports betting landscape
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Sports gambling has swept the nation since the U.S. Supreme Court opened the door in 2018 for states to allow it, but the two most populous states — California and Texas — are among the holdouts.
Why it matters: If sports betting becomes legal in California, it'd immediately become the top market in the country.
Case in point: When New York launched online betting in January 2022, it broke the single-month record for handle in just three weeks. New York's population is 19 million. California's: 39 million.
Driving the news: Nearly 80% of U.S. states have legalized sports betting; Missouri voters narrowly approved it this election.
- Missouri is the 39th state to legalize sports betting in some respect.
- The two most popular sports betting apps, FanDuel and DraftKings, both spent heavily to support the measure.
Zoom in: FanDuel in particular has banked on California for a while — its $70 billion promise to investors relies on getting the state to legalize sports betting.
- At an investor's day conference in September, FanDuel CEO Amy Howe told attendees California remains a critical market for expansion but added that the company plans to focus on its public affairs strategy and "build the right coalitions" to make it happen.
Flashback: FanDuel was part of a consortium of commercial operators that spent heavily to boost Proposition 27, which would've legalized online sports betting, in the 2022 election.
- Native American tribes, who would no longer have exclusive gaming rights in the state if it passed, responded with a strong opposition campaign.
- Both major parties in California also came out against the measure and stood with the tribes.
- The $400 million spent on ad campaigns for and against Proposition 27 shattered California's record for a single proposition.
Yes, but: It failed to garner 20% support.
What to watch: California's tribal nations have emphasized that they should be the ones leading any attempt to legalize sports betting, which means an agreement between tribal leaders and operators isn't out of the question.
- It could go back to voters for consideration in 2026 if supporters gather enough signatures.
Editor's note: This story has been corrected to say New York launched online betting in January 2022 (not January 2024).