Competing sports betting scheme wins voter support in California


TEMECULA, Calif. — The Super Bowl champion Los Angeles Rams kick off the 2022 NFL season Thursday night by hosting the Buffalo Bills. Not a single dollar is exchanged in legal sports betting in the most populous states of the United States.

But this time next year, all that could change depending on the outcome of two competing bills in California in November.

For residents, the next two months will likely be a barrage of ads supporting or opposing Proposition 26, which allows in-person sports betting, and Proposition 27, which legalizes online sports betting.

The gaming industry is eager to pass either or both of the bills that would fold California with New York, New Jersey and 29 other states that have legalized sports betting.

“Given the size of the market, this is a big deal,” said Casey Clark, senior vice president of the American Gaming Association.

“There’s a huge opportunity in the games business that’s attractive to the size of the market and what that opportunity means,” said Clark. “Certainly everyone is paying attention to what’s going on there.”

But the results of the ballot measure extend far beyond corporate interests, with profound implications for California’s Indigenous communities to fund programs that help the homeless.

Proposition 26

Passage of Proposition 26, known as the In-Person Tribal Sports Betting Act, legalizes in-person sports betting because of four private racetracks and 66 Native American casinos. It would also legalize roulette and craps at Native American casinos.

Profits from sports betting on racetracks are taxed at 10%, with most going to a general state fund and the rest being divided between gambling addiction programs and non-gaming tribes.

Proposition 26 has the support of business and law enforcement groups in many rural areas of California, where most of the state’s Native American casinos are located.

Mark Macaro, Chairman of Luiseño Mission Indian Pechanga Band, said:

“It represents a lifeline to our community that was supposed to be there from a promise from the federal government. California tribal games were a godsend,” says Temecula-based Makaro, whose tribe is a major supporter of Prop. 26 and an opponent of Proposition 27, said.

Proposition 26 campaign spokeswoman Kathy Fairbanks argued that sanctioning new forms of gambling while limiting them to dozens of physical locations would be appealing to voters.

“They’re fine with gambling, but not every street corner wants it,” Fairbanks said. [Prop. 26] We are keeping the same promise California voters made to their tribes. “

California casino-style games have traditionally been exclusive to Native American lands.

Proposition 27

Passage of Proposition 27 will allow residents of New York, New Jersey and Pennsylvania to play online sports games similar to smartphone-based betting already available through the biggest names in sports gambling: FanDuel, DraftKings and BetMGM.

Digital gambling companies looking to do business in California must partner with a Native American tribe and obtain a license in the tribe’s name, which costs $100 million for the first five years of the license.

10% of license fees and profits will be donated to the newly established California Online Sports Betting Trust Fund. According to the Office of Legislative Analysts, after funds are spent to cover “state regulatory costs,” 85% of the remaining funds will go to “homelessness and gambling addiction programs,” while 15% Used for “tribes not involved in gambling”. online sports betting.

The potential benefits of homeless initiatives are a major reason why Democratic mayors in big cities like Libby Scharf of Oakland, Robert Garcia of Long Beach and Darrell Steinberg of Sacramento supported Proposition 27. measurement.

“It is widely known that our state budget does not have a continuous source of revenue for homeless interventions. Ongoing funding just can’t keep up,” said Nathan Crick, spokesman for Proposition 27. “This revenue will fill a real need and a real hole in our budgeting process.”

Proponents of Prop. 27 put the homeless problem to the fore, calling it the solution to California’s Homelessness and Mental Health Assistance Act.

money flows in both sides

The proposed duel raised a lot of money, according to the latest Secretary of State records.

prop prop. 26 initiatives, while anti-prop, raised $107 million. 27 Fund He raised $198 million.

Prop. 27 backers, meanwhile, raised more than $157 million in counterproposals. 26 efforts earned him nearly $42 million.

With huge amounts of booty, sports fans are likely exposed to political advertising during the baseball playoffs and throughout most seasons of college and professional football. Major League Baseball has voiced its support for Proposition 27.

prop prop. 26 and anti-prop. So far, 27 spots have come forward as out-of-state tech companies trying to steal money from Native Americans and Californians.

prop prop. Prop. 27 ads tout the economic benefits of fighting the homeless while attacking Prop. 26 as a windfall for the tribes that run casinos only.

STATE DEMOCRATIC NEUTRAL ON PROPOSITION 26 BUT NO ON PROPOSITION 27. State Republicans oppose both bills.

What if both measures pass?

Proposition 27 says it is “complementary and complementary” to Proposition 26 and consistent with other measures.

But Proposition 26 has no such dispute-free language, and potential legal challenges to Proposition 27 by the gaming tribes if both bills pass, especially if Proposition 26 wins more votes. A claim is set.

“Worst case scenario [Prop. 27 backers] Marybeth Moylan, associate dean of the University of the Pacific McGeorge School of Law and an expert in election law, said:

“The proponents of 26 may say that 27 is inconsistent and cannot take effect and that 27 will eventually pass and not take effect. That can happen,” she said. .

Moylan added that the court “will look at the actual language and make it clear that Proposition 26 requires a physical presence requirement.”

Prop. 27 supporters like Crick, a spokesperson for the campaign, are confident the courts won’t raise any concerns if both bills pass.

“They are not in conflict, and the court considered the two voter-approved measures, looked at the intent, looked at the words, looked at the substance, and found that they were not inconsistent. We know,” said Crick.

WHAT YOU SHOULD KNOW ABOUT PROPOSITIONS 26 AND 27

  • Proposition 26 It’s called the Interpersonal Tribal Sports Betting Act.
  • It legalizes in-person sports betting on the grounds of four privately owned racetracks and 66 Native American casinos.
  • It would also legalize roulette and craps at Native American casinos.
  • The bill is opposed by state Republicans. State Democrats are neutral.
  • Proposition 27 It’s called the California Solution to Homelessness and Mental Health Assistance Act.
  • Allowing online sports games requires digital gambling companies to partner with Native American tribes and pay $100 million for the first five-year license.
  • A portion of lost bets and license fees goes to tackling homelessness and gambling addiction, while another portion goes to tribes not involved in online sports betting.
  • Both Democratic and Republican state parties oppose it, but Major League Baseball supports it.



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