LOS ANGELES – The most expensive ballot proposition gamble in U.S. history went bust Tuesday as California voters rejected sports betting altogether, shooting down initiatives by Native American tribes and the betting industry.
The two groups have raised nearly $600 million in competing efforts to expand their gambling operations and capture a piece of the potential billion-dollar market in the nation’s most populous state. But voters don’t want a part of that action.
Supporters and opponents of dueling measures flood voters with ads for proposals that would legalize sports gambling by allowing it at tribal casinos and racecourses or through mobile and online betting.
The money raised and spent is more than double the record amount rolled out by Uber, Lyft and other app-based ride-hailing and delivery services in 2020 to prevent drivers from becoming eligible employees. benefits and job protection.
However, preliminary polls show both ballot measures face an uphill battle for a majority. More than 30 other states allow sports betting, but gambling in California is currently limited to Native American casinos, racetracks, card rooms, and state lotteries.
Supporters of the two initiatives have proposed different ways to offer sports gambling, and each has touted other benefits that they say will come to the state if their measure is approved. .
Proposition 26 would allow casinos and the state’s four major racecourses to offer live sports betting. The initiative, funded by a coalition of tribes, will also allow roulette and dice games at casinos. The 10% tax will help pay for gambling law enforcement and programs to help addicts.
Proposition 27 would allow online and mobile sports betting for adults. The major gaming companies will have to partner with a tribe engaged in gambling or tribes that may have entered the market themselves. That measure was supported by DraftKings, BetMGM and FanDuel – the latter being the official odds provider for the Associated Press – as well as other national and some tribal sports betting operators.
The initiative is being promoted because of the funding it promises to provide through tax revenue to help the homeless, the mentally ill, and the poorer tribes that have never gotten rich in casinos. the silver.
The nonpartisan Office of Legislative Analysis found both initiatives would increase state revenue but it was unclear by how much. Proposition 26 may have brought in tens of millions of dollars while Proposition 27 may have generated hundreds of millions, the office said.
However, that revenue could have been offset if people spent money on sports gambling instead of shopping or buying lottery tickets. Democratic Governor Gavin Newsom took no position on either proposal but said Proposition 27 “is not a homeless initiative.”
California Republicans oppose both proposals. State Democrats oppose Proposition 27 but are neutral on Proposition 26. Major League Baseball supports Proposition 27.
The No Proposition 26 campaign, funded largely by loss-making casinos, said the measure would give certain tribes wealth and power a “virtual monopoly over all games”. in California.”
Committee #27 said the proposal was based on deceptive promises and said the game companies behind it “didn’t write it for the homeless, they wrote it for themselves.”
