Last updated on April 30th, 2022 at 08:51 pm
One of the measures voters will decide on the November ballot is the legalization of California sports betting. However, the issue is not as simple as allowing sports wagering. The initiative will also block smaller companies from opening an online casino and sportsbook in the state.
Those are high stakes for an industry that could round up more than $3.5 billion every year from California bettors. Also, the state sees itself as the world’s startup capital.
Of the four sports wagering initiatives contending to make November’s polling form, one is paid for by online games wagering goliaths DraftKings, FanDuel, and BetMGM. It would permit gaming organizations and Native American tribes to give sports wagering on the web across the state. However, a license requirement will be hard for small companies to meet.
California Sports Betting Initiative
Yet, inserted in the initiative are prerequisites that would be undeniably challenging for PPH sportsbook operators. Companies need to pay a $100 million licensing fee to operate in the state. Also, they need to have a license in ten states or operate in five states. They also need to have 12 casinos.
The $100 million fees will ensure that small-time pay per head sportsbook operators will not be able to operate in California.
The state’s Legislative Analyst’s Office wrote in the appraisal of the action it’s dubious how much cash the new assessments and charges would produce for the state. However, it could arrive in the mid-many millions every year.
The action hasn’t equipped for the voting form yet — it’s assembling marks. However, Click, the representative for the mission, said the effort is well in front of where it should be to qualify.
If one of the drives passes, California will become one of 30 states to authorize wagering on sports. The business could create $3.57 billion every year in net income for substances by offering sports wagering to individuals in California if online and in-person wagering is legitimized.
