The battle to bring sports betting to California is ongoing, with several initiatives in the works. Proposition 27 is one such effort, hoping to bring sports betting to the state via online services including apps. Companies behind this plan include BetMGM, FanDuel, and DraftKings. Prop 27 has been losing ground over the past few weeks, and now, Governor Gavin Newsom has decided to give his opinion.
The governor says the initiative is bad for the state and it would hurt the Indian tribes, plus brings a risk of underage gambling. Newsom also stated that it would push money out of California and into the hands of corporations that are not located in the state.
Vote No on Prop 27:
In speaking with Politico, the governor urges voters to check NO for Proposition 27 this fall. Last month, the Public Policy Institute conducted a poll in the state that showed only 34% of voters approved Prop 27.
The measure would allow online sports betting via web browsers and applications. Companies like DraftKings, FanDuel, and BetMGM pooled their resources and spent around $170 million to push the idea to the public. Opposing groups like a Native American tribal coalition, spent $180 million to try and see the measure rejected.
Money from Prop 27 would go towards homelessness and mental health support. To help push the effort, television ads have ramped up as of late. It is unclear if the effort it is helping any or doing more harm than good. If voters are already against the proposition, then the influx of advertisements is more annoying than helpful.
Prop 26 Brings Sports Betting to Reservation Casinos and Horse Racetracks:
The opposition measure, Prop 26, would bring sports betting to casinos located on reservations. Tribes would be able to offer services and benefit from earnings. Horse racetracks would also be allowed to obtain sports betting licensing.
Prop 26 would require the state to work with tribes to figure out how much in earnings would go to the state by way of payments. Racetracks would pay 10% of daily bets to California after payouts are made. Proponents of the measure say that tens of millions in earnings will be generated from services.
The cash will be used to provide better education in the state, cover transportation needs, and homelessness. Most of the earnings would go towards the general fund of the state. The remaining cash would be split and used for compliance needs and gambling programs for players.
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