California Sportsbook Petition Filed with Justice Department

California Sports Betting Law - 2020 California Sportsbook Referendum

If the referendum passed a statewide vote, Californians could bet on NFL, NBA, MLB, NHL, and NCAA games.

Russell Lowery, a political consultant, has filed paperwork with the California Department of Justice to introduce a sportsbook legalization referendum on the November 2020 presidential election ballot. Lowery calls the bill the Gaming Fairness & Accountability Act.

The Las Angeles Times reported that Russell Lowery filed ballot initiative paperwork in the office of Xavier Becerra, the California Attorney General.

The preliminary paperwork says that the statewide vote would “authorize banking and percentage games, including and not limited to sports wagering.”

According to the paperwork, Russell Lowery is a lobbyist for a group called Californians for Sports Betting. The lobbyist cited consumer protection concerns and a boost to state revenues as the main arguments in favor of a California sports betting amendment.

Sports Betting Consumer Protections

In a statement published in the Los Angeles Times, Lowery said, “I think the biggest reason for this is consumer protection [because sportsbetting] is going on now. Because of the revenue the state could generate from legal activity plus the consumer protections that could be afforded the gambling public, it ought to be regulated.”

When asked to explain the origin of the referendum plan, Russell Lowery suggested he took the initiative in pushing the sportsbook amendment or working on behalf of other interests, after gauging interest among key interests.

Californians for Sports Betting

The spokesman for ‘Californians for Sports Betting‘ said, “I reached out to in-state gaming interests, out-of-state gaming interests and the sports leagues [and] there was enough interest to try to build a coalition that was more viable.”

Russell Lowery is a well-known, well-connected member of the California Republican Party. At one time, he was the California Senate Republican Caucus’s Chief of Staff. Lowery also is a longtime lobbyist for Pacific Gas and Energy, a mega-corporation worth $68.01 billion in assets which supplies energy and natural gas to 5.2 million Californians in the northern two-thirds of the state.

Prefers Gaming Referendum to Legislation

Lowery said he filed the paperwork with the executive branch of the California government because he had no faith in the California state legislature to pass a sports betting bill. Having watched the “legislative dynamics” in the legislature during the past decade in regards to the online poker issue, California lawmakers appear stalemated on issues involving gaming regulations.

While the path to a 2020 sports betting referendum is a long 2 & 1/2 year slog, Californians for Sports Betting believes it is a surer path to legalized California sportsbooks. Instead of wasting two years on squabbling among the land-based gaming interests of California — and the lawmakers who take donations from those interests — Californians for Sports Betting are going the direct route through the governor’s office.

Xavier Becerra’s Sports Betting Decision

How much of a chance California Attorney General Xavier Becerra will accede to Russell Lowery’s request, it is a move sometimes used by those backing casino measures. For instance, two different groups of casino proponents in Arkansas have sought a statewide referendum on developing land-based casinos, instead of going through the Arkansas state legislature.

Russell Lowery says his petition with the AG’s office is a natural response to the news that the US Supreme Court struck down the PASPA federal ban on sports gambling in 46 US states. California was one of those 46 states with a strict ban on land-based sportsbooks, so this is the first time the Golden State could legalize sports betting in decades.

Who Backs Californians for Sports Betting PAC?

Over time, it will become known which California gaming interests back Californians for Sports Betting. Usually, political action committees (PACs) are backed by powerful financial interests which stand to gain from a law being passed.

For instance, in a statewide casino referendum on the November 2018 ballot in Florida, the Seminole Tribe of Florida and the Disney Company combined to donate more than $10 million to a petition drive. The Seminoles want to eliminate possible competition from county-level officials who might legalize slots casinos, while Disney wants to keep Florida a family-friendly tourist destination (without rampant casinos).

Californians for Sports Betting needs 600,000 confirmed signatures to sponsor a petition drive that would put the referendum on the November 2020 ballot. It is estimated such a petition drive would require $2.5 million to fund the political action commitee. Eventually, donations to the Californians for Sports Betting PAC will become known.