LAS VEGAS, PRNewswire/ - If California citizens authorize online and retail sports wagering in November it will unlock to a market that has the potential to produce more than $30 billion in wagers each year, according to forecasts from PlayCA.com, which evaluates legalized gambling in California. Those wagers would create some $2 billion in operator revenue and $300 million in state taxes each year.

" California is the holy grail of sports betting markets, and not simply because of its sheer size," said Dustin Gouker, chief expert for PlayCA.com. "It appears that legislators are working to put in location a structure that will make California uniquely attractive to every significant operator. And due to the fact that it has the potential to be the biggest legal sports wagering market in the U.S., ultimately it represents a seismic shift in the market."

The California assembly took a substantial action towards the legalization of online and retail sports betting in the Golden State on Thursday by including application information to ACA 16 and SCA 6. The new language in the expenses, which were initially presented in June 2019 by Sen. Bill Dodd (D-Napa) and Assemblyman Adam Gray (D-Merced), would amend the state constitution to:

- Authorize retail and online sports wagering at the state's tribal casinos and racetracks if authorized by citizens, however not at the state's cardrooms.

- Set a tax rate of 10% on gross income for in-person betting and a 15% tax for mobile or online wagering.

- Impose taxes on the platform operators instead of directly by the people, to prevent sovereignty concerns.


The tax rates are sensible within the context of legal U.S. sports betting jurisdictions. By contrast, New Jersey, the country's biggest online sports wagering market, levies a 13% tax on online sports wagering earnings and 9.75% tax on profits from retail sportsbooks. Pennsylvania levies a 36% rate, by far the greatest in the nation.

With the proposed tax rate, California could produce $240 million in operator income and $36 million in state taxes each year from online sports wagering and another $60 million in operator earnings and $6 million in taxes a year from in-person wagering, according to PlayCA.com estimates.

" The tax rates are fair for both operators and the state, and would be competitive with numerous of the states that have already legalized sports betting," Gouker stated. "The rate definitely won't frighten off sportsbook operators, who are all eager to go into California. This balanced approach must help the marketplace ramp-up quickly once the industry launches, which is ideal thinking about California's budget plan crunch."

The state assembly and senate still need to authorize the costs, and then it should be signed by Gov. Gavin Newsom, before it can make its method to tallies this fall. But with a $50 million shortfall in California's budget plan, and deep cuts anticipated, there is pressure on legislators to find brand-new sources of earnings.

" The structure of these expenses appears noise, and it must assist the state eventually understand its profits objectives to the benefit of all of California," Gouker stated. "As for the gaming market, if sports betting is approved by voters, it stands to alter the face of sports betting throughout the nation,"

For more, see PlayCA.com.

About the PlayUSA.com Network:
The PlayUSA.com Network and its state-focused branches is a leading source for news, analysis, and research associated to the marketplace for regulated online video gaming in the U.S.