The campaign focuses on California, Texas, Georgia and Florida, where sports betting is limited or banned and event contracts have found demand.
Charles Breyer said the plaintiffs likely have standing and that an injunction could be next.
The ruling keeps blackjack-style play alive for now as the state’s long fight with cardrooms and tribal casinos heads toward appeal.
For the first time in the multi-state lottery’s history, grand prizes of more than $1 billion were awarded back-to-back.
Prop 27, an industry-backed initiative to legalize online sports betting in CA through partnerships with tribal casinos, only won 16.7% of votes.
Identity of the lucky winner is not yet known, but the ticket was sold at a gas station in suburban Los Angeles. The owner of the gas station received a bonus check for $1 million for the sale.
Operators spent about $170 million trying to convince voters to back Prop 27, but to no avail. With one month left to go, the industry is now reportedly canceling ad buys.
Survey by the Public Policy Institute of California (PPIC) suggests industry-backed initiative for California online sports betting is doomed, despite nearly $170 million spent to date in support.
CEO Tom Reeg says the company wants to avoid offending its tribal business partners, including two tribes in Cali where Caesars manages their properties.
Meanwhile, five sports betting operators spent $50 million in July to get the initiative passed.
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