California Sports Betting Hopes Dimmed After Tribes File Lawsuits

Any momentum sports betting had gained in California may be gone.

Several of the states’ tribes have joined to file 90 lawsuits against gambling operators in the market. Those include cardrooms and race tracks, which the lawsuits accuse of offering games that are only allowed at tribal casinos. The accusations echo those levied over the push to legalize sports betting, dampening hopes that the industry could soon come to the state.

The 2025 legislative session is underway in California, but no sports betting bills have been introduced.

Trust at the Center of Issue for Tribes

The lawsuit aims to protect the revenue generated by tribal casinos. The industry is the largest in the US, even beating out Las Vegas. However, trust appears to be a real issue for the state’s tribes.

The sentiment echoes those shared by the tribes regarding attempts to legalize sports betting. They have accused cardroom and race track operators of making many false statements. The last failed sports betting bill died because some of those operators claimed they had tribal support. Tribal leaders confirmed that this wasn’t true, exposing the lie and killing yet another sports betting bill. 

While these 90 lawsuits focus on casino games, the trust between the two sides remains broken. 

California Would be the Largest Market in the US

Sports betting has caused a stir in the Golden State because of its large market. If the state launches the industry, it will immediately become the largest in the country. That means massive revenue numbers, leading several parties to push for inclusion in any bill to legalize sports betting.

Each proposed bill has given the tribes control over most of the industry but would also allow cardrooms and race tracks to offer sports betting. The amount of money at stake has made negotiations tense over how operating licenses would be divided.

In addition to the operating licenses, the state also needed to find common ground over how the industry would be taxed. New York is currently the largest sports betting market in the US, with a whopping tax rate of 51%. California’s taxes are among the highest in the country in most categories, leading them to push for high rates for sports betting.

Could Fires Change Debate?

The 90 lawsuits are a bad sign for the sports betting industry in California, but other factors could change this debate. 

Wildfires have been ravaging the state for years, with some of the worst now sweeping through north Los Angeles. The state is losing residents at a historic rate, leaving it with fewer tax dollars to battle the growing issues.

Sports betting could represent a way for the state to pay for the fire damage. Colorado can be used as an example, with the state using sports betting revenue to help address water shortages. This is an effort many California residents would likely get behind, helping to overcome the strong objections of the state’s tribes.