On May 14, 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act, which had effectively banned sports betting in most of the country. In the one year since the landmark ruling, both red states and blue states have rushed to legalize sports betting and cash in the potential revenue. Delaware and New Jersey legalized the practice less than a month after the Supreme Court ruling and, on Wednesday, Gov. Eric Holcomb signed a bill into law making Indiana the 11th state to legalize sports betting, not including Washington D.C.

In addition to the list of states that have legalized betting, more than 30 others are considering legislation that would do so. But California — a state that typically sees itself as ahead of the times and has the nation’s highest number of professional sports teams — has lagged behind.

 “I do think it is ridiculous that you can bet on the Dodgers or Lakers or Angels in Las Vegas and now in all these other states and not do it here,” said Kirk Barns of Brea, who was visiting a desert casino on a short golfing vacation. “Just make it legal like in other places. I’m sure the state will make money off of it by taking their share.”

Making sports betting legal in California is complicated by the state’s constitution and decades-old compacts allowing casinos on tribal lands exclusively. California’s 63 casinos all operate on tribal lands and take in about US$ 7.9 billion annually. The Desert Sun reached out to Agua Caliente Rancho Mirage and Fantasy Springs Resort and Casino, which is run by the Cabazon Band of Mission Indians, but officials from neither tribe-operated casino responded to requests for comment.

In 2010, a federal court ruled California could not negotiate new gaming compacts with tribes that required payments into the state's general fund and, as compacts have gradually expired, gaming tax revenue has plummeted. According to the nonpartisan Legislative Analyst’s Office, the state will only rake in US$ 3.6 million in gaming tax revenues in the current fiscal year — down from US$ 330 million two years ago. That’s pennies compared to Nevada, where gaming tax revenues provide the state with more than US$ 700 million annually and account for about 20% of its general fund revenue.

California lawmakers, the tribes and national casino businesses see sports betting as potentially lucrative. Adam Candee, the managing editor of sports betting news site Legal Sports Report, said fighting over how to implement legalization could make the process longer than in other states. “Because of the state constitution and the dominance of tribal gaming in California, you have an environment that requires negotiations from a diverse group of stakeholders,” he said.

Last summer, political consultant Russell Lowery filed papers with the Secretary of State for a 2020 ballot initiative that, if passed, would have allowed businesses “to conduct on-site sports wagering and to operate Nevada-style card games,” but also prohibits the governor from approving gaming outside of tribal lands. The initiative stalled when Lowery didn’t attempt to gather signatures required for it to appear on the 2020 ballot in late February.

In an interview with The Desert Sun, Lowery said he never envisioned getting sports betting legalized via proposition and described filing the paperwork as more of a political maneuver to force legislators to act.

California law prohibits legislators from making meaningful changes to laws passed by ballot initiative, and Lowery said he and his client hoped introducing a proposition could convince lawmakers to pass a law and preempt the proposition from appearing on the ballot.

In past years, Assembly member Adam Gray, D-Merced, has introduced legislation to legalize sports betting. Gray, often a vocal proponent for legalizing sports betting, declined to comment for this story. But in 2016, he said Californians bet on sports whether the state authorized it or not and pointed to the potential tax revenue from the industry, which the American Gaming Association estimates brings in US$ 150 billion annually nationwide.

In 2017, Gray introduced AB 1573, a bill that proposed creating a legal framework for sports betting. The following year, as sports betting was making its way through the federal court system, He introduced ACA 18. It proposed amending the state constitution to allow sports betting if it was legalized on the federal level. Neither bill advanced in the state legislature.

“The choice is not, should we have sports wagering or not have sports wagering. We do have sports wagering,” Gray said in an interview with KCRA. “You could see tax revenue as high as a US$ 100 million or US$ 200 million a year to the state general fund if we authorize sports wagering.”

After last year's landmark Supreme Court decision, California Nations Indian Gaming Association Chairman Steve Stallings said casino-operating tribes should play a central role in the path to legalization. “California voters have, on numerous occasions, confirmed the exclusive right of California tribal governments to operate casino-style games,” he said. “Legalization of sports betting should not become a backdoor way to infringe upon exclusivity.”

With tribes wanting to protect their monopoly on gaming on one side, casino operators looking to expand the industry on the other side and politicians wanting new revenue sources, Lowery said it's difficult to rally supporters and pressure the government to act. “It’s not clear who would make money in California on sports betting. With the lack of clarity, it’s tough to organize to get it done,” he said.

Candee, the Legal Sports Report managing editor, said the legalization process has been slower in larger states. “Specific to California and Florida, and you could apply this somewhat to Illinois, when you have a state this big, this much money, this many interested parties, it’s just going to take a long time,” he said. “The pressure is on them to take advantage of the opportunity sooner rather than later. “If it takes years for sports betting to come to California, I don’t think anyone will be surprised,” Candee added.

Candee said he believes the multibillion-dollar industry could be a boon for states in search of additional revenue sources, but Lucy Dadayan, a researcher at the Urban Institute, said that, historically, state politicians and industry leaders have overpromised on potential revenue from “sin taxes,” including gambling, cigarettes, alcohol and the lottery.