California Assembly Member Files Amendment For Authorization of Sports Betting

Adam Gray, Assemblymember from California, is looking to single-handedly put one of USA’s largest states back on track in regards to sports betting by filing a constitutional amendment that would regulate this gambling vertical.

A precondition for this is that it would need to be ratified by citizens in a ballot organized throughout California.

“The Most Prudent Way Forward”

He is seeking to amend Section 19, Article IV of California’s Constitution of State…

…in order to provide the necessary power of authorization sports betting legalization to the legislature, thus establishing a regulatory framework and tax system for the sports betting vertical after the legislation is introduced.

Gray, who is an Assembly Governmental Organization Committee chair, has explained that the amendment was “filed in response to the Supreme Court’s decision to bring down 1992’s PASPA in May 2018.

“The US Supreme Court has shouldered the burden of bringing legal clarity to the issue of sports wagering and the rights of states under the Constitution. Now it is the responsibility of the Legislature to determine the most prudent way forward.” comments Gray.

California Running Out of Time

Gray’s major concern is that eight US states currently offer legalized sports betting …

…and that at least 35 more are considering their options. In spite of legal restrictions at the federal level mostly, this vertical has been wildly popular – over $150 billion is being wagered every year, illegally.

Gray says that the people of California are already betting on sports via illegal channels such as shady websites in foreign countries.

“It is time to shine a light on this multibillion-dollar industry. We need to crack down on illegal and unregulated online gaming and replace it with a safe and responsible option which includes safeguards against compulsive and underage gambling, money laundering, and fraud. All other gaming activities in California are subject to regulations that ensure the safety of consumers. Sports wagering should be treated no differently.”

November 2020 Elections As an Opportunity

Gray aims to put this measure to vote during California November 2020 elections…

…as it would need to be ratified by a two-thirds majority on a referendum. Developing a regulatory framework would have to begin after this date, which almost certainly means that California will not have regulated sports betting before 2021.

Senate Government Organization Committee chair, Bill Dodd, would file a complementary amendment in California legislature’s upper house.

Dodd said he looks forward to working with stakeholders in a collaborative effort to “help bring this out of the shadows.”

“By legalizing sports wagering we can avoid some of the problems associated with an underground market such as fraud and tax evasion while investing in problem gambling education,” added Dodd.

The bill was filed on June 27th. A series of informational hearings on sports betting all throughout the state will be conducted by the Assembly and Senate Governmental Organization Committees. Committee will be given the opportunity to collect an array of perspectives from experts and interested parties alike.

Source:

“California Assemblymember files sports betting proposal”, Robin Harrison-Millan, igbnorthamerica.com, June 28, 2019.