DraftKings, FanDuel Potentially Looking at 2024 for California Online Sports Betting Legalization

• The Wall Street Journal is reporting DraftKings and FanDuel are pulling ad spends on California sports betting ballot initiative
• DraftKings and FanDuel CEOs both mention 2022 ballot initiative may not be approved by state voters at recent Global Gaming Expo
• Sports betting operators think 2024 may stand better chance for California legalization

California online sports betting legalization chances have taken several hits over the past few weeks and top sports betting operators may already be looking ahead to 2024.

California voters will decide the fate of several sports betting initiatives in the upcoming November election, but online sports betting operators DraftKings and FanDuel are reportedly pulling back $11 million in planned broadcast television and cable ads they had planned to run after disheartening results from a recent UC Berkley sports betting poll, according to the Wall Street Journal.

DraftKings, FanDuel Cut California Ad Spend

Several sports betting operators, led by DraftKings and FanDuel, have spent nearly $170 million in pro-Prop 27 advertisements in the state. Prop 27, the “California Solutions to Homelessness and Mental Health Support Act,” aims to legalize California online sports betting for operators partnered with California Tribes.

Despite the spend, pro-Prop 26 defenders have matched advertising in the state. Prop 26, the “Tribal Sports Wagering Act,” would legalize retail sports betting for California Tribal Casinos and four state racetracks. According to the Wall Street Journal, the tribes have raised a total of $233.1 million to fight Prop 27.

The heavy ad spend on both sides have likely led to voters souring on the legalization of sports betting in California. A recent poll from the UC Berkley Institute of Governmental Studies found a majority of survey respondents were not in favor of either ballot initiative to California sports betting.

According to the recent poll conducted by the university, 53% of respondents are against Prop 27, the “California Solutions to Homelessness and Mental Health Support Act,” which aims to legalize California online sports betting for operators partnered with California Tribes. Only 27% of respondents are in favor of the proposition and 20% are undecided.

The poll was administered from Sept. 22 to 27 among 8,725 California registered voters, including 6,939 likely voters.

The findings of the poll aren’t as grim for Prop 26, but did not forecast a sunny future for the initiative. Only 31% of respondents approved of the retail sports betting initiative compared with 42% who disproved of the measure.

Sports Betting Leaders Looking to 2024?

At the recent Global Gaming Expo meeting, DraftKings CEO Jason Robins and FanDuel CEO Amy Howe both expressed hope that Prop 27 would be approved in November, but if not that momentum from 2022 would carry over into 2024 for another potential California online sports betting initiative.

The massive spend on either side likely has turned off sports betting supporters for either the online sports betting initiative and the retail initiative, both said.

“We will live to fight another day,” Howe said at the meeting.

There is no opportunity for a statewide online sports betting ballot initiative in 2023, as California will only hold municipal elections next year.

California remains one of the largest untapped sports betting markets in the country, alongside Florida and Texas. All three states may need to undertake a sports betting ballot initiative to legalize sports betting, as legislators seem unwilling to push a sports betting bill through their governing bodies.