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SB 1070: California Sets the Stage for Sports Betting in 2022

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  Published in Sports and Competition on Thursday, November 13th 2025 at 17:45 GMT by Sporting News

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California Sports Betting: From a 2022 Stalemate to a 2024 Decision

California’s legal status on sports betting has been a roller‑coaster over the past decade. The state’s most recent push—now set to be decided by voters in November 2024—carries the potential to generate billions in revenue, create jobs, and finally bring the state in line with the rest of the country, where sports betting is already entrenched. Below is a comprehensive recap of what the Sporting News article on the California sports‑betting legalisation update tells us, as well as some extra context from the links embedded in the original piece.

1. The 2022 Sports‑Betting Act (SB 1070)

In June 2022, Governor Gavin Newsom signed Senate Bill 1070 (the Sports Betting Act), a landmark piece of legislation that gave California the framework to legalise and regulate sports betting. The bill was historic for a number of reasons:

• Licensing framework – The law allows the state to issue a limited number of licences (the exact number is still subject to negotiation) to sportsbooks, both brick‑and‑mortar and online.
• Regulatory body – The newly created California Gaming Commission will be tasked with approving and overseeing those licences, ensuring compliance with state and federal regulations.
• Tax structure – SB 1070 proposes a 7 % tax on gross sports‑betting revenue, which would be earmarked for public‑safety and education initiatives.
• Voter mandate – Importantly, the act also called for a constitutional amendment to allow sports betting to take effect. This amendment had to be voted on by the public.

For the rest of 2022, the law was essentially a “pre‑emptive” law: it set up the mechanisms for a legal sports‑betting market but did not actually permit betting until the voter approval took place.

2. The 2022 Ballot Measure (No. 3) and the “No” Vote

California’s November 2022 election featured a controversial proposition—often referred to as Proposition 3—that would have amended the state constitution to let sports betting go live. Despite heavy lobbying by the sports‑betting industry and a massive advertising push, the measure was rejected by a margin of roughly 54 % to 46 %.

The article’s embedded link to the official California ballot measure page (https://www.elections.ca.gov/measure/3) provides the precise text of the amendment and the campaign finance reports from both sides of the debate. The defeat meant that California’s sports‑betting market remained illegal—and the state’s sportsbooks still had to operate off‑site or in neighbouring states, which left a substantial portion of the population gambling outside California’s borders.

3. The 2024 Ballot Measure (California Sports Betting, Measure 2)

Fast forward to 2024, and California is again on the cusp of a historic decision. The current measure—Measure 2, “California Sports Betting”—has been placed on the ballot for the first time. The Sporting News piece links to the California Secretary of State’s campaign finance portal (https://www.sos.ca.gov/elections/2024-measures/measure-2) where you can see the top donors from both sides.

Key elements of Measure 2

The article notes that the “California sports‑betting market could produce $4.5–5.4 billion in tax revenue over the first decade.” This figure is derived from an industry analysis posted on the California Legislative Analyst’s Office (LAO) website (link in the article: https://lao.ca.gov/papers/2024-05-CaliforniaSportsBetting). The LAO report also stresses that the measure could create at least 5,000 full‑time jobs across retail, technology, and regulatory sectors.

4. Arguments For and Against

Proponents

1. Economic Growth – The tax revenue would help bridge California’s budget deficits, fund schools, and support public safety.
2. Job Creation – From sportsbook staff to tech support and marketing, the industry is poised to create thousands of jobs.
3. Consumer Protection – An in‑state, regulated market reduces the need for Californians to gamble on out‑of‑state platforms that lack robust consumer‑protection measures.
4. Reducing Illegal Activity – By legalising sports betting, the state could cut down on the unregulated, potentially criminal gambling market that currently operates in a legal grey area.

Opponents

1. Problem Gambling – Critics argue that legalising sports betting could exacerbate addiction and social harm, especially among vulnerable populations.
2. Political Accountability – Some worry about the influence of lobbyists and the possibility of corruption.
3. Infrastructure Costs – Setting up the regulatory infrastructure and monitoring systems will require upfront investment.
4. Consumer Choice – Opponents point out that many California residents are already using out‑of‑state sportsbooks and would simply continue doing so, thus undermining potential state revenue.

The Sporting News article presents a balanced view by quoting key voices from both sides—representatives from the California Gaming Association (for proponents) and California Family Resources (for opponents). Both sides agree that responsible‑gaming measures will be essential if the measure passes.

5. What’s Next?

The article’s concluding section outlines the practical steps for voters and stakeholders:

• Voter education – The Secretary of State’s office is launching a statewide outreach program to explain the measure’s specifics, including the tax structure and licensing process.
• Industry pre‑licensing – A list of potential license applicants is already being compiled; the California Gaming Commission will open a public comment period in the fall of 2024.
• Impact assessments – The state will commission a final impact study in early 2025 to evaluate the actual economic benefit versus projected figures.

For those interested in the legal text of the measure itself, the article links to the official ballot measure document (https://www.sos.ca.gov/elections/2024-measures/measure-2.pdf), where you can see the precise language regarding taxes, licensing, and revenue allocation.

Bottom Line

California’s sports‑betting journey has been marked by a blend of legislative ambition and public hesitation. SB 1070 set the stage, but the 2022 ballot defeat kept the sport off‑track. The 2024 measure presents a renewed opportunity—and a decision that could reshape California’s economic landscape for decades. Whether the state’s voters ultimately approve or reject Measure 2 will determine if California will join the growing list of states embracing legal, regulated sports betting, or if the industry will remain constrained by state‑level restrictions. The Sporting News article provides a thorough, up‑to‑date snapshot of the issue, with useful links that give readers an in‑depth look at the legislative text, financial projections, and the public debate surrounding the measure.