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CALIFORNIA SPORTS BETTING MEASURES FALL AS VOTERS REJECT BOTH PROPS | THE
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SPORTS


CALIFORNIA SPORTS BETTING MEASURES FALL AS VOTERS REJECT BOTH PROPS

By David Caraviello Gambling.com

November 09, 2022 10:30 AM
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A general overall view as Los Angeles Rams center Coleman Shelton prepares to
snap the ball at the line of scrimmage during organized team activities at
California Lutheran University. Kirby Lee USA TODAY Sports


Advocates of legal sports betting in America’s most populous state were left
looking for a new way forward after a pair of referendums that would have
legalized California sports betting each went bust.

Dueling California sports betting ballot measures that would have allowed legal
sports betting on tribal lands and outside of tribal lands were each defeated
soundly in Tuesday’s general election in the Golden State, raising real
questions about the future of legal sports betting and sports betting apps in
what would undoubtedly be a billion-dollar market.

The results in California also run counter to a sports betting phenomenon that’s
swept much of the country since the U.S. Supreme Court struck down the
nationwide ban on sports wagering in 2018.



The California sports betting ballot measures included one backed by legal
sports betting heavyweights FanDuel Sportsbook, DraftKings, Penn National,
WynnBet and BetMGM, which would have allowed mobile sports betting in the state
and allocated $500 million to battle California’s chronic homelessness problem.
The other option, backed by the tribal casinos that have been fixtures in
California for decades, would have allowed retail sports betting only at tribal
casinos and four horse racing tracks.


CALIFORNIA SPORTS BETTING PROP RESULTS STEM LEGAL SPORTS BETTING TIDE

The sides spent hundreds of millions of dollars in advertising in the run-up to
Tuesday’s election, only to receive a gut punch from the final numbers.
Proposition 26, which would have allowed only retail sports betting only on
tribal lands, was losing with 70.1% of the vote against it, according to the
California Secretary of State website. Proposition 27, which would have allowed
mobile sports betting statewide, was trailing with 83.3% of the vote against it.



Neither measure was perfect — the tribal initiative omitted mobile betting (and
thus sportsbook promo codes), which is how 90% or more of legal sports bets are
placed in states that allow the practice; and the mobile option would have
mandated licensees pay a $100 million fee with a $10 million renewal every 10
years, effectively pricing out smaller contenders. A March poll backed by
DraftKings, FanDuel and BetMGM and conducted by David Binder Research found that
59% of respondents said they would vote yes on the mobile measure.

Those figures proved very different once real votes were cast, even though 33
U.S. states either currently offer some form of legal sports betting or plan to
launch sports betting in the coming months. “This campaign has underscored our
resolve to see California follow more than half the country in legalizing safe
and responsible online sports betting,” said Nathan Click, spokesman for the
“Yes on 27” group that was backing the mobile option.


CORPORATE ‘INCURSION’ THWARTED

The California sports betting measures were defeated by voters even though the
state has 69 licensed tribal casinos, 84 licensed card rooms, four horse racing
tracks that allow pari-mutuel wagering, and 23,000 lottery retailers, according
to the nonprofit news source CalMatters. Experts predict that California with
its 38 million residents could generate $3 billion in sports betting revenue
should mobile sports betting ever become a reality in the state, and bettors
could enjoy sign-up offers such as the BetMGM bonus code and its $1,000
risk-free bet or the Caesars Sportsbook promo code and its $1,250 in first bet
insurance.



For now, though, sports bettors in California must travel to neighboring
Arizona, Nevada or Oregon to legally bet on sports. In the aftermath of the
defeat of the dueling ballot measures, analysts posit that any further attempt
to legalize sports betting in California may have to be done in tandem with the
tribes that have long held sway over gaming in the Golden State.

Going up against them, after all, didn’t work.

“The sovereign right of tribes to exclusively operate casino-style gaming in
California, as originally confirmed by the State’s voters over two decades ago,
has been preserved from the incursion of out-of-state corporations,” Dan Little,
chief intergovernmental affairs officer at San Manuel Band of Mission Indians,
said after Prop 27’s defeat. “Those corporations should be aware that California
tribes will always protect their people and their sovereignty.”


RESPONSIBLE GAMBLING

Always gamble responsibly. All licensed and legal operators in the United States
have resources available to bettors, including educational guides on how to spot
problem gaming, links to support services and tools to self-exclude for a set
period of time. Support is available at the National Council on Problem Gaming,
1-800-GAMBLER and American Addiction Centers. Be sure to only wager on gambling
sites that are licensed and regulated by the gaming regulatory body in your
state. That ensures games are fair, bets are honored, customers’ funds are
secure and that there are legal protections for the consumer.



Sports betting and gambling are not legal in all locations. Be sure to comply
with laws applicable where you reside.




DAVID CARAVIELLO/GAMBLING.COM


Veteran sports journalist David Caraviello has written about sports betting for
several years and has covered college football, college basketball, motorsports
and golf, covering all three US golf majors, the Daytona 500 and SEC football.




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