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Super Bowl betting boom and the California conundrum

Lea Hogg February 12, 2024

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Super Bowl betting boom and the California conundrum

Super Bowl LVIII marked a significant milestone in the history of sports betting. Analysts had predicted a record-breaking amount of bets for this event, which was the first NFL championship game held in Las Vegas. However, this wasn’t the first time a Super Bowl was hosted in a state that legalized sports betting. That distinction goes to Arizona, when Super Bowl LVII was hosted at Glendale’s State Farm Stadium, home to its own BetMGM-operated sportsbook.

Thousands of fans, particularly those supporting the Kansas City Chiefs and San Francisco 49ers, flocked to Las Vegas to partake in the city’s largest special event. Interestingly, both California and Missouri, the home states of the rival teams, are among the 12 US states that do not offer legal sports betting.

California sports betting scenario

Despite being a progressive state, California astonishingly remains without legalized sports betting. The potential for a sports betting industry in California has been closely monitored by Nevada’s gaming industry, as many Californians frequently travel to Nevada to place bets on major sporting events.

The California sports betting market is one of the largest in the country. The prospect of the state legalizing and taxing sportsbooks, whether they operate from land-based tribal casinos or on mobile devices, could significantly impact black-market operations and illegal bookies.

Taylor Swift’s Super Bowl impact

Super Bowl LVIII was not just a football event but also a cultural phenomenon, largely due to the presence of pop superstar Taylor Swift. Swift’s relationship with Kansas City Chiefs’ tight-end Travis Kelce, (in photo with Swift), who secured his second consecutive Super Bowl win, has been a focal point throughout the season. During her high-grossing Eras tour, Swift consistently attended Kelce’s games. Their relationship has raised considerable attention, contributing to an increase in the NFL’s popularity.

Swift’s influence on the Super Bowl viewership was significant. A Seton Hall University poll revealed that 21 percent of Americans, and 41 percent of 18-34-year-olds, were influenced by Swift’s presence to watch the game. NFL Commissioner Roger Goodell acknowledged Swift’s impact, calling her a “dynamo” and welcoming her massive fan base’s contribution to the sport’s audience. Despite some controversy and conspiracy theories surrounding Swift and Kelce’s relationship, their influence on the NFL and Super Bowl LVIII has been undeniable.

However, any move to legalize sports betting in California must have the backing of the state’s Indian tribes, who operate their own casinos. This became evident when two sports betting initiatives, Propositions 26 and 27, were soundly defeated by voters in the November 2022 election. The California tribes did not support either proposal, and analysts suggested that ballot confusion led to the defeat of both initiatives.

Since then, another sports betting proposal emerged but also failed. Gambling industry veteran Casey Thompson and blockchain executive Reeve Collins drafted a proposal last September to include a new sports betting initiative on the 2024 ballot. The Thompson-Collins proposal would have given control of California sports betting to the tribes. However, they failed to inform the tribes about their plan, leading to its downfall.

As the legal battles continue, sports betting thrives in California, albeit illegally. The American Gaming Association has long advocated for federal authorities to play a larger role in shutting down illegal operations and discouraging players from placing bets through illegal sources. The case of Wayne Nix, a California-based illegal bookmaker, serves as a stark reminder of the risks associated with illegal gambling operations. Nix, who gambled at the MGM Grand, led to the conviction of MGM’s former chairman, Scott Sibella, on federal charges of racketeering. Nix pleaded guilty to one count of conspiracy to operate an illegal gambling business and one count of filing false tax returns. Both Nix and Sibella await sentencing for their respective crimes.

While the excitement and success of Super Bowl LVIII have been unprecedented, the future of sports betting in California remains a complex issue. The state’s tribes hold the key to resolving the resolution of sports betting in California.

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