Sports betting in the United States is a rapidly growing industry, with more and more states legalizing and regulating it in recent years. Currently, 30 states and Washington D.C. have legalized sports betting in some form, and many more are expected to follow. However, California, the most populous state in the country, is yet to join the list. In this article, we will examine the current state of sports betting regulation in California and compare it with other states in the US.

Current State of Sports Betting in California:

Despite numerous attempts, California has yet to legalize sports betting. The state has been debating the issue since the US Supreme Court struck down the federal ban on sports betting in 2018. However, Californians still have access to hundreds if not thousands of betting platforms which are licensed and regulated to operate securely outside the state. This is where comparison and review sites come in, to give you an example, Business 2 Community compares sportsbooks in California, where players can find all the information with regards to the accessible sportsbooks from the state. Not only that, one can also learn and understand the legal side of the situation, such as the fact that the legislative process has been slow, and various stakeholders, including Native American tribes and card rooms, have not been able to come to a consensus on the issue.

Currently, there are several bills that have been introduced in the California legislature that would legalize sports betting, but none have gained significant traction. The most recent attempt was Senate Bill 2, which was introduced in December 2020. The bill would have allowed for sports betting at tribal casinos and horse racing tracks but faced opposition from card rooms.

Comparison with Other States:

While California has yet to legalize sports betting, other states have moved forward and established regulated markets. Let's compare California's approach to sports betting with some of these states.

Nevada:

Nevada, home of the world-famous Las Vegas Strip, has a long-standing reputation as the gambling capital of the United States, with a thriving gaming industry that dates back to the 1930s. Sports betting has been a part of the Nevada gaming landscape for many decades, with the state becoming the first to legalize it in 1949. Over the years, Nevada has developed a regulatory framework that is considered one of the most robust in the country, with strict licensing requirements, rigorous background checks, and regular audits to ensure compliance.

One of the key factors that have helped Nevada to establish itself as a leading sports betting market is its low tax rate for operators. The state levies a tax of just 6.75% on gross gaming revenue from sports betting, which is significantly lower than some other states. This low tax rate has helped to attract major players in the industry, including MGM Resorts International and Caesars Entertainment, which operate some of the largest sportsbooks in the state.

Another factor that has contributed to Nevada's success in sports betting is its approach to regulation. The state's regulatory framework is designed to protect consumers and ensure the integrity of sports betting. This includes measures such as prohibiting wagering on high school and amateur sports, requiring operators to report suspicious betting activity, and providing resources to help problem gamblers.

New Jersey:

New Jersey was the first state to challenge the federal ban on sports betting and was ultimately successful in the Supreme Court. The state has since become one of the largest sports betting markets in the US, with both retail and online sports betting available. New Jersey has a relatively high tax rate for sports betting operators, which has not deterred major players like DraftKings and FanDuel from entering the market.

Pennsylvania:

Pennsylvania legalized sports betting in 2017 and has since established a regulated market that includes retail and online sports betting. The state has a relatively high tax rate for sports betting operators, which has been a point of contention for some in the industry. However, the state's regulatory framework is considered strong, and major players like DraftKings and FanDuel have entered the market.

Colorado:

Colorado legalized sports betting in 2019 and has since established a regulated market that includes both retail and online sports betting. The state has a relatively low tax rate for sports betting operators, which has helped to attract major players like DraftKings and FanDuel. Colorado's regulatory framework is considered strong, and the state has been proactive in addressing issues such as problem gambling.

Some Other States That Have Legalized Sports Betting Include:

  • New York: New York legalized sports betting in 2019, but only at four upstate casinos. Efforts to expand sports betting to mobile platforms and other locations in the state have faced opposition and have not yet been successful.
  • Illinois: Illinois legalized sports betting in 2019 and has since established a regulated market that includes both retail and online sports betting. The state has a relatively high tax rate for sports betting operators, which has been a point of contention for some in the industry.
  • Michigan: Michigan legalized sports betting in 2019 and launched its first online sportsbooks in January 2021. The state's regulatory framework is considered strong, and major players like DraftKings and FanDuel have entered the market.
  • Virginia: Virginia legalized sports betting in 2020 and launched its first online sportsbooks in January 2021. The state has a relatively low tax rate for sports betting operators, which has helped to attract major players like DraftKings and FanDuel. Virginia's regulatory framework is considered strong, and the state has been proactive in addressing issues such as problem gambling.
  • Tennessee: Tennessee legalized online sports betting in 2020, becoming the first state to do so without any retail sportsbooks. The state has a relatively high tax rate for sports betting operators, which has been a point of contention for some in the industry. Tennessee's regulatory framework is considered strong, and the state has been proactive in addressing issues such as problem gambling.

While sports betting has become a rapidly growing industry in the United States, California is still yet to legalize it. Despite several attempts to pass legislation, stakeholders have not been able to come to a consensus on the issue. This puts California at a disadvantage compared to other states that have already established regulated sports betting markets. These states have different approaches and tax rates for sports betting operators, but all have established strong regulatory frameworks to address issues such as problem gambling. As the debate over sports betting continues in California, it remains to be seen when and how the state will join the growing list of states that have legalized and regulated sports betting.