California Looking to Take Step Closer to Legalized Sports Betting
A new sports betting bill has shed some light for California. This bill has the potential to bring some compromises to the Golden State area with retail and mobile sports betting.
There were two bills that were introduced last June by Senator Bill Dodd and Assemblyman Adam Gray, respectively. The two bills were set to be voted on in late November, and lawmakers have just recently returned the bills with implementations. The bills are as follows:
What the bills say
This newer interpretation now authorizes sports betting in California, but only with the state’s tribal casinos and racetracks. An even bigger blow to California’s card rooms, as they would not get sports betting, but the bill ensures that they can continue offering the designated player games that have faced tribal challenges in the past.
The increased effort to all of this, is no surprise, from the COVID-19 pandemic. Lawmakers are trying to seek out the relief of having the estimated $14 billion for tax cuts from the Governor take part in allowing online wagering.
The online wagering estimated income is expected to be around $700 million, which would greatly benefit the coronavirus budget.
Details of the bill
As the bill is making its way for horse racing and tribal casinos to allow sports betting, the bill has some stipulations within it. These are put in place to encourage the funding of the budget that the lawmakers are seeking to benefit everyone at interest.
The stipulations are as follows:
* This is a taxing rate at 10 per cent on gross revenue for the onsite wagering and 15 per cent for the mobile or online wagering.
* Comes with a $5 million initial licensing fee and a $1 million annual fee for any online wagering platforms.
* Licensees must keep one percent of the revenue to fund problem gambling programs.
* The four licensed horse racing tracks are also eligible to have sports betting at one determined satellite wagering facility.
* This also allows tribal casinos to offer some additional games of craps and roulette.
* The use of official league data for in-play wagers has to be mandated for official league data records.
* Taxes and fees would be paid for by the platform’s entity.
* One internet website will be authorized to allow the tribes, racetracks, and satellite facilities to offer sports wagering.
Senate budget for California at play
California has its budget deadline for June 15, even though the bill has until the date of June 25 to even qualify for the ballot. The Senate has acknowledged the fact that sports betting would play into the future of the budget.
The financial leaders within the Senate all seem to agree on one thing. It will be difficult to say no to the passing of the sports betting bill because it is easier to have funds come from this rather than make cuts childcare, education, or any form of government-related spending.
As mentioned above, the estimated revenue coming from the sports betting side has a potential revenue, at maturity, around $500 to $700 million a year. They believe the first year or so will have around $200 to $300 million in revenue.
This is some serious cash flow. This is definitely something that the Senate and its majority will be taking their time with to make sure they get right. This needs to be done in a timely manner, but also delicate to ensure it gets done properly.
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