Major US sportsbooks back California online betting initiative
BetMGM and FanDuel among operators supporting effort to help fund mental health and homeless services through mobile sports betting
A handful of the biggest US sportsbooks are joining forces in support of an online sports betting initiative in California that would help fund mental health and homeless services in the state.
The group of seven operators, which include BetMGM, FanDuel, and DraftKings, unveiled details of the ‘California Solutions to Homelessness and Mental Health Support Act,’ which would at once serve to bring online betting out of black and gray markets while supporting California’s homelessness and mental health crises.
The initiative would be seeded by a $100m contribution from the operators, according to campaign manager Dana Williamson.
Williamson added that the initiative would not conflict with an existing 2022 ballot measure backed by the state’s gaming tribes that would legalize retail sports betting at casinos and racetracks.
While the tribe’s have notably opposed online gaming, the act would require operators to partner with a tribe to gain licensure, thereby establishing a revenue-sharing model that would entrench the tribal communities as primary stakeholders in a regulated online market.
“A state that is home to many of the world’s most innovative technology companies should no longer be stuck with antiquated, unsafe and untaxed sports betting options,” the coalition of operators said in a joint statement.
“The act ensures a comprehensive licensing process – one that requires extensive vetting of experienced operators – and creates a competitive marketplace, as competition for market share will ensure the best products and experience for consumers.”
In addition to a licensing framework centered around the tribes, the initiative would establish firm online gaming safeguards, limiting participation to individuals 21 and older while providing additional funding to California’s problem gambler treatment program.
“California is one of the most important sports betting markets in the world, and BetMGM is committed to bringing legal, regulated mobile sports betting to the state,” said BetMGM CEO Adam Greenblatt, referencing a population of 40 million people and a corresponding market that could generate up to $500m in online sports betting revenue according to some estimates.
Bally’s, Penn National Gaming, Wynn, and Fanatics are also part of the coalition.