‘We’ll be back’ say sportsbook operators in California battle

The big names throwing millions of dollars at a TV ad campaign and lobbying to get the door open to commercial sportsbooks in California, are not giving up.

At the G2E show this week, the CEOs of both FanDuel and DraftKings told a crowded seminar that if they fail in their bid to get the market open in a measure to be decided next month, that they would be back.

California’s lawmakers are to decide on two proposals, one from the Native Indian casinos to keep sportsbooks inside their properties for in-person betting only, or the one to open up the market to mobile sports wagering that is backed by the major operators. Or both plans could be thrown out. In the latter is the case, then they would return for another try, said Amy Howe, CEO of FanDuel and Jason Robins, CEO at DraftKings.

Their comments followed a report on Monday in The Wall Street Journal that suggested that they are cutting back on their advertising campaign in support of Proposition 27. The proposal would permit mobile betting through tribal casinos, but the newspaper said that indications are that it would fail.

The tribes themselves want retail sports betting at their properties and horse tracks only.

Nearly $600m has been committed by the two parties to their advertising campaigns so far, but the stakes are high because California is regarded as the great prize for sports betting, worth around $3bn annually.

Howe told the G2E briefing: “It’s hard to imagine that sports betting won’t include the state of California. It’s always been our industry’s intention to try and find a solution that aligns the stakeholders – the tribes, racetracks, government and ultimately consumers. We believe there is a path to get there. Whether we get there in 2022 or get there in 2024, we believe it is the right path.”