Sentinel staff report–
The Citrus Heights City Council last week unanimously voted to oppose a California sports betting initiative set for the November ballot, citing concerns of “frivolous lawsuits.”
City Manager Ashley Feeney told city leaders during the June 9 council meeting that Stones Gambling Hall had approached him to ask if the city would consider opposing the initiative. If passed, the city attorney said “it would give private law firms the ability to file lawsuits as if they’re the attorney general,” whereas current law typically requires lawsuits involving gaming to be filed directly by the attorney general.
The initiative, known as the California Legalize Sports Betting on American Indian Lands Initiative, will be on the ballot as a constitutional amendment. It would allow on-site sports wagering at certain locations, and impose a 10% tax on sports betting at horse-racing tracks.
While the council’s discussion focused on lawsuits, the wording of a resolution passed by the council also cited concern that tribal casinos would gain “an advantage on gaming and sports betting at the expense of cardrooms operating in the state,” noting substantial tax revenue the City of Citrus Heights receives from cardrooms.
Vice Mayor Tim Schaefer voiced his concerns about the initiative, calling it an “affront to my sensibilities.” Schaefer was joined by his four fellow council members in voting 5-0 to file a letter of opposition to the initiative.
Councilmember Jeannie Bruins noted that it was important to resolve the vote that night so that they could bring their decision to the California League of Cities meeting the next day.
The State Attorney General has released an official title and summary for the initiative, stating the following:
- Allows federally recognized Native American tribes to operate roulette, dice games, and sports wagering on tribal lands, subject to compacts negotiated by the Governor and ratified by the Legislature.
- Beginning in 2022, allows on-site sports wagering at only privately operated horse-racing tracks in four specified counties for persons 21 years or older.
- Imposes 10% tax on sports-wagering profits at horse-racing tracks; directs portion of revenues to enforcement and problem-gambling programs.
- Prohibits marketing of sports wagering to persons under 21.
- Authorizes private lawsuits to enforce other gambling laws.
Proponents of the measure claim it will help stamp out illegal gambling and generate new jobs, with regulations to ensure no underage gambling would take place. In addition, tax revenue would be used to help targeted state programs.
Supporters are generally associated with tribal groups, with opponents largely from casinos. Several other similar ballot measures have also been proposed.
In 2018, the United States Supreme Court overruled federal prohibitions on sports betting, as reported by Cal Matters. The decision is now left to each state to decide, with many states like Arizona, Nevada and Washington already legalizing the activity.
