Anyone who lives in and around the Pacific Palisades area will have seen the headlines generated by sports betting in the USA recently. Since the US Supreme Court struck down the PASPA act in 2018, multiple states have elected to legalize sports betting. This has not only led to several well-known sportsbooks and apps being made available to bettors in these states but also prompted Americans to spend an estimated $125bn on wagers over the last four years.
Whether you live in Brentwood, Malibu or Santa Monica, you will be well aware of the debate around sports betting in California. But what is the current landscape and would the US Treasury notice if this were to change?
Where does California stand on legal sports betting currently?
As California’s online sports betting status shows, sports betting is not legal in California yet and not an activity people in places such as the Pacific Palisades can take part in right now. Many people though believe this could change moving ahead. An upcoming public vote on retail sportsbooks in November 2022 could prove key.
When you consider the state’s love for sports and the size of the potential market for sports betting in California, it seems clear that this could be sanctioned by state officials soon. You also need to factor in the huge extra tax revenues that legalized sports betting will bring into state coffers, plus the extra jobs it could create and the overall positive impact on the local economy.
For these reasons, many people expect to see California making legal sports betting possible in the near future. With updates to the Marina del Rey vision statement also released, California is looking at a bright future moving ahead it seems.
But would the US Treasury notice if it opened up for sports betting?
Would the US Treasury notice if California opened up to sports betting?
This is an interesting question to pose because the extra money raised by legal sports betting in California would actually go into local state funds. Despite this though, we expect that the US Treasury would be more than aware if it happened.
But why is this? To begin with, any decision to legalize sports betting in the state would make major national headlines. There would be plenty of TV, newspaper and online new reports about it for example and a real buzz generated by California’s changing stance.
There would also be a real buzz about it inside not only local but central government too. We imagine the corridors of power all the way up to the White House would be following California’s decision on this issue. It would be hard for the US Treasury to miss this and not notice if California had made sports betting legal.
Tax revenues could spark US Treasury interest
In addition, to the news coverage and general furor legal sports betting in California would bring, you must also look at taxes. The fact is that betting on sports in the US is a taxable activity, meaning you should report any earnings from sports betting to the IRS once you exceed the relevant threshold.
As the IRS falls under the umbrella of the US Treasury, you can bet they will be very interested in collecting all the tax revenue they can from gamblers in California. They are likely to take a very keen interest in not only how many people are gambling on sports in the state but also how much money is being spent on it.
The other thing you must consider is that the US Treasury is responsible for the economic health of the whole country. This means they would certainly be keeping an eye on California as one of the USA’s biggest states and how any changes to its economy might impact the US overall. Due to this, they would definitely be aware if California opened up to sports betting in future.
Sports betting could be on its way in California
While nothing has been confirmed yet, it does seem the future looks bright for sports betting in California. With public demand growing steadily, the love people in California have for sports and the extra revenue it could bring into state coffers, it is easy to see why it could be here soon. If this does happen, we fully expect that the US Treasury will notice when it arrives!
