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25% of California Sports Betting Gross Receipts To Go Towards Homeless, New Budget Proposes

The tribal nations in California have proposed a budget initiative for sports betting which will be decided on the 2022 ballot. California has the potential to be a massive sports betting state when the industry becomes legal because of its large population and the high number of professional sports teams.

The California Cities Gaming Authority has analyzed the Cities Gaming Initiative and Tribal Gaming Initiative in preparation for the sports betting ballot vote. These are two proposals, and the Gaming Authority detailed the benefits and cons of each plan.

The Tribal Gaming Initiative will be on the November 8, 2022, ballot. The Cities Gaming Initiative is currently in the process of being added to the initiative.

Will the initiatives benefit the public?

The Cities Gaming Initiative will benefit the public, but the Tribal Gaming Initiative will not help California citizens. Cities allow more entities to offer sports betting than the tribal, which just authorizes tribal gaming facilities.

The wider pool of sports betting operators will create more tax revenue, benefiting the general public. The same cannot be said for the tribal plan because of the limited field. Within the plan, a line requires the legislature to support social needs with the finances from gaming.

Under the Cities Gaming Initiative, 25% of the gross receipts must go towards the homeless, affordable housing, public education, and mental health. One percent of the gross revenue must be dedicated to problem gambling.

The Tribal Gaming Initiative does not require tribes to pay taxes on their existing revenue or on the money they will receive from sports betting. This will constrain the public because they will not receive tax benefits from the industry.

Legislatures enact sports betting for tax revenue, so the Tribal Gaming Initiative defeats the purpose of the market.

What entities can offer sports betting?

Under the Cities Gaming Initiative, tribal gaming facilities will still be able to offer sports betting. However, they will be joined by horse racing tracks, card rooms, professional sports teams, and online operators.

Under the Tribal Gaming Initiative, horse tracks can offer sports betting, but cardrooms are banned. Since California has an extensive number of professional sports teams, it would be best to expand wagering to these entities.

Retail sportsbooks at these locations would help the state financially prosper compared to the limited Tribal Gaming Initiative.

The only benefit of the Tribal Gaming Initiative is the protection secured under the act. Nevertheless, the public is protected under the Cities Gaming Initiative. Both acts have set the minimum betting age at 21.

There will be no sports betting marketing towards children, and official league data will have to be used by operators. California colleges cannot be wagered in the state.

When the facts are combined, the Cities Gaming Initiative makes more sense than the Tribal Gaming Initiative because it allows more involvement in the industry. This will help the state financially and give support to problem areas within the economy.

The Tribal Gaming Initiative only helps the tribal nations. If this ballot initiative is enacted, it will cause more problems than benefits.

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