California’s sports betting propositions

The campaigns for Props 26 and 27 on this November’s ballot have made a variety of claims. Some of the claims are misleading. The ads are "oversimplified to a point of not being fully accurate" Under Proposition 27, both gaming companies and tribes could offer online and mobile sports betting. Over 50 tribes and tribal organizations oppose Proposition 26. They say it would disrupt the gaming that has been operating on tribal lands for decades. It would drive business away from Indian casinos. Three of California”s 110 federally recognized Native American tribes support the online sports gambling proposition.

Tribes that have compacts with the state of California that allow them to offer gambling could create their own mobile sports betting app or website. They could also partner with a gaming company that wants to launch online sports gambling. The initiative also taxes online betting and sets aside 15% of the money for tribes that aren't involved in sports.

Proposition 27 is likely to generate $500 million annually for the state. It's unclear to what degree each tribe would benefit. The money would be used to cover new costs related to regulating sports betting and to address homelessness. The Legislature could also choose to direct some of it to gambling addiction treatments.

Proposition 27 taxes online sports betting at 10%. It's impossible to know exactly what will happen with the money generated by the initiative. If it's not enough to address homelessness, gaming companies headquartered in other states will want to get in on the action. If the Legislature decides to direct a large portion to gambling addiction treatments, that would reduce the amount that goes to homelessness solutions. The initiative also allows California tribes to offer mobile and online Sports Betting on their own.

The companies funding the campaign are headquartered outside California. It's impossible to know what percentage of profits would go to them. The campaign is based on Proposition 26. Proposition26 allows anyone who believes someone else is breaking California gambling laws to sue. Before they could sue, they would need to ask the state Department of Justice to act.

In 2000, Californians voted to allow tribes to offer certain forms of gambling. Proposition 26 would expand tribes' exclusive rights to do that. It would also allow private trial lawyers to bring cases that are currently under the purview of government lawyers. The Yes on 26 campaign hasn't hidden the fact that tribes intend to sue cardrooms. The rules over exactly how cardroom are allowed to operate has been a source of disagreement between card rooms and tribes.

California's sports betting propositions are up for a vote on Sep 8, 2022.