California a potential $30 billion market if sports betting bill passes
If California voters approve online and retail sports betting in November it will open the door to a market that has the potential to generate more than $30 billion in wagers annually, according to projections from PlayCA.com, which analyzes legalized gambling in California.
Those wagers would generate some $2 billion in operator revenue and $300 million in state taxes each year, according to a press release from PLayCA.com.
“California is the holy grail of sports betting markets, and not just because of its sheer size,” said Dustin Gouker, chief analyst for PlayCA.com. “It appears that legislators are working to put in place a structure that will make California uniquely attractive to every major operator. And because it has the potential to be the largest legal sports betting market in the U.S., ultimately it represents a seismic shift in the industry.”
The California assembly took a significant step toward the legalization of online and retail sports betting in the Golden State last month by adding implementation details to ACA 16 and SCA 6. The new language in the bills, would amend the state constitution to authorize retail and online sports betting at the state’s tribal casinos and racetracks if approved by voters; set a tax rate of 10 percent on gross revenue for in-person wagering and a 15 percent tax for mobile or online wagering; and impose taxes on the platform operators rather than directly by the tribes, to avoid sovereignty issues.
With the proposed tax rate, California could generate $240 million in operator revenue and $36 million in state taxes annually from online sports betting and another $60 million in operator revenue and $6 million in taxes a year from in-person betting, according to PlayCA.com estimates.