Three Events That Will Lose Money for California in 2021
In 2021, California State Senator John Kiffe introduced a bill that would have legalized online sports betting in California. At that time, only three states – Connecticut, Montana, and New Hampshire – permitted betting on sports via the Internet. Today, thirty-nine states allow Internet gambling. In light of this situation, the National Collegiate Athletic Association, or the NCAA, has banned the use of software applications that enables Internet gambling. If the California State Legislature passes legislation allowing online sports betting, there may not be any sports matches played between football teams in California if the California Supreme Court has not ruled in favor of the NCAA’s position on gambling.
There are two major reasons why the NCAA has taken a stance against online gambling. First, according to the NCAA, it is a form of gambling by definition because it does not require an individual to place a wager to enter a State athletic association event. Second, individual universities and state colleges that participate in NCAA sports events may decide not to participate in matches that are hosted by gambling sportsbooks, therefore preventing the schools from taking part in an event.
According to the NCAA, it is not the government’s role to determine whether or not the State universities and colleges should be allowed to participate in sporting events. The decision as to whether gambling on games is legal rests solely with the individuals who run the online sports betting sites. Should the California State legislature to pass legislation legalizing online sports betting revenue, then any online sportsbooks that run advertisements on their websites for these games could potentially be in violation of the NCAA’s gambling policy.
The second potential problem facing the NCAA and its member conferences is the potential loss of revenue for the NCAA if California legalized sports gambling and the California State Legislature passed legislation authorizing its operators to accept bets from residents of California. Many of the conference offices, such as the Atlantic Coast Conference and the Central Division, make money through the sales of basketball and football championship tickets. In California, there are approximately 16.5 million people who can’t get tickets to these championship games because of the high prices, according to the California Department of Finance. This means that revenues from games that are not sold through the dfs will be eaten up by the conferences.
The current proposal from the California State Legislature would allow betting on games from California participating in the NCAA. However, the NCAA does not have anything to do with the games that are played in other states. The only way that the NCAA could lose money from legalized online gambling in California is if the State did not allow California residents to gamble on games from other states. If the California legislature passes this bill into law, it will be interesting to see what happens at the NCAA and the Big Ten Conference next year.
In order for the NCAA to lose money, the majority of college athletes would have to stop playing their sport. Currently, they play for pride and because they love the game. They probably would not want to give up the game for the sake of earning money through online sports betting. Even if the players did not want to give up their games, their sport may lose out on a large portion of the revenue from bettors if they passed laws that would legalize online sports betting in California.
The second major event that California will lose money from is the State’s Horse Racing Commission. The State wants to continue to regulate the amount of money that is placed on bets at the state-run parimutuel tracks. Unfortunately, the new California bids for the Super Bowl will force the commission to do a complete overhaul of its licensing system and its overall horse racing system. The new system, that the State is proposing will essentially eliminate all controls on the amount of money that is placed on bets at the state-run tracks. In the long run, the proposal by the California State Athletic Association could force more people to place their bets at the many online sports books that are popping up across the country.
The final event on the list of events that California will lose money from is the State’s Gaming Commission. Gambling is legal in California but only in some limited circumstances. For example, card games, lotteries and electronic gaming are only available through licensed dealers. The State does not regulate poker or blackjack. Poker is strictly a game of chance and blackjack is a game of skill. However, all three of those games are closely related to the world of online gambling and the three will definitely suffer if the State gets involved in an online gambling debate in 2021.