Face-to-Face Sports Betting Debated in California, Online Left Out

California residents appear to be moving closer to accepting sports betting as part of everyday life. According to a Citrin-POLITICO poll, half of registered voters are ready to accept regulation as long as betting is limited to tribal casinos and in-person sportsbooks at those facilities.

The idea of online betting is not entirely foreign to the public either. Among survey respondents, 37 percent said they would vote in favor of a referendum on online sports betting. This points to a scenario in which tribes could expand their reach, earn new revenue, and keep their weight in the state's gambling market.

Tribes have so far generally been cautious about legalizing sports betting. They previously opposed Propositions 26 and 27, which voters rejected. The tribes want any future legal framework to avoid reducing their revenue, and they argue they hold a significant share of this market.

Voters' positive view of tribal businesses in physical venues is seen as an important opportunity for local operators. The problem, however, is that in states where land-based and online betting coexist, 95 percent of traffic flows through mobile apps. So even if tribes protect their market, they could lose substantial revenue from online betting.

It is unclear whether private companies such as DraftKings and FanDuel will be allowed to operate in California. Under a model that preserves the tribes' exclusive rights, these companies would be unable to operate locally, so they are likely to object.