Californians are expected to vote to allow sports betting and gambling this fall. Critics fear that new small betting businesses cannot operate in the state due to limited economic power.
Recently iGamingNJ Informed that there could be industry-related issues that could bring in more than $3.5 billion every year.
In total, there will be four initiatives related to sports betting and gambling in the November ballot. One of them, the most important, is offered by American gambling giants such as FanDuel, DraftKings and BetMGM.
The initiative is known to impose some special requirements that would be extremely difficult for smaller competitors to meet.
The New Jersey Way
When Nevada made gambling legal, it was only a matter of time before more states allowed gambling to be used until online casinos were booming again. The value of profits from NJ casinos is enormous. We see big slots like MGM becoming the Official Entertainment Partner of Major League Baseball. That’s what makes the game prospects so exciting for those who follow the market stand in the Garden State and California.
There are many advantages when it comes to the process of legalizing gambling in a particular region of the United States. For instance, iGaming offers new job opportunities in the state market. This is typical of all states where gambling (and/or betting) has been legalized, including New Jersey.
Another advantage California would gain is the increased size of the budget. If the initiative is approved, $100 million is a sum that gaming companies will be expected to pay as license fees to operate in the state. Especially at start playing online in this state.
Problems legalizing gambling in the Golden State?
The $100 million licensing fee is far higher than in any other state seeking to make gambling legal. Now the $25 million fee to acquire the New York license is the highest in the country. Most states that have legalized gambling have licensing fees in the millions or hundreds of thousands in the single digits, and no other state requires businesses to already be licensed in other states.
Additionally, some gaming operators already dominate iGaming in the United States. FanDuel controls 31% of the US market, followed by DraftKings with 26%, BetMGM with 16% and Caesars with 12%. This means that small businesses cannot do gambling in California, which means fewer options for potential gamblers and potentially less innovation.
We will see what will happen in the future. For now, the California government is trying to do everything possible to make the legalization process hassle-free.