California bill on sportsbetting to be heard soon

SB190 authorises the owner or operator of a gambling establishment, or the owner or operator of a horse racing track, including a horse racing association, with a current license, to conduct wagering on professional and collegiate sports or athletic events, other than on collegiate sports or athletic events that take place in California or in which any California college team participates.

It makes provision for applications to conduct sports betting to be made through the California Gambling Control Commission or the California Horse Racing Board, on payment of an annual fee for deposit in the Gambling Addiction Program Fund. The bill would require each licensed entity to remit to the Treasurer on a monthly basis for deposit in the state’s General Fund, an amount equal to 7.5 % of its gross revenues generated by sports wagering activities.

The proposal tasks the commission, the board, and the department to adopt regulations to implement its provisions, including authority to adopt regulations establishing fees in a reasonable amount to recover costs incurred performing their duties pursuant to these provisions.

There are protective clauses to guard against underage and problem gambling, and recognition of tribal rights to participate “…consistent with the requirements of the federal Indian Gaming Regulatory Act of 1988.” The bill does however raise once again the prospect of a US state coming into conflict with a federal law.

New Jersey is already in the throes of a legal contest against the federal government and the national sports leagues over its decision to legalise sports betting despite the federal Professional and Amateur Sports Protection Act, which restricts sports betting to just four US states.