California Ballot Question Big Issue on Election Day

With the mid-term elections slated for November 8 in the U.S., the most important issue to be decided for gaming is whether California will legalize sports betting in any form. And for states without legalized sports betting, these elections provide a chance to bring the discussion to the forefront. This is especially true when it comes to governors.

California Ballot Question Big Issue on Election Day

Election Day 2022 is about to unfold in the U.S. and despite the fact that mid-term elections usually draw far fewer voters than in presidential years, this one could be different.

The first two years of the Biden administration have been something of a disaster for the Democrats. Open borders, soaring inflation, radical policies and questions about the president’s physical and mental health are likely to drive Republicans to the polls in record numbers bring with them a possible “red wave.”

But for gaming, it’s a relatively quiet year, with few issues impacting the industry on the ballot—except for one.

Sports betting in California has always been cited as the “holy grail” for the sports betting industry. The potential size of the market dwarfs any other in the U.S.—even New York, which has proven to be quite large. But competing referendums—Proposition 26 by the tribes of the state that would limit sports wagering to retail at their casinos and state racetracks; and Prop 27 by the online sports betting giants, that would open up the state to online wagers—has effectively killed the chance to legalize any variation of sports betting in the state.

As recently as last weekend, the Los Angeles Times published a poll by the Berkeley Institute showing both measures failing miserably. Prop 26 has only a 30 percent “yes” vote, and Prop 27 does even worse at 22 percent in favor. This after the backers of Prop 27 spend upwards of half-a-billion dollars to publicize their efforts. After a small effort to promote their measure, the tribes went totally negative against Prop 27, with a defeat of both propositions seen as the best result for them.

The fallout could impact any effort to legalize sports betting for years to come.

Meanwhile, the gubernatorial elections that will occur on November 8 gave candidates a chance to decide where they stand in states where sports betting has yet to be legalized, according to Sports Handle.

Whether opinions swayed many voters is another question, especially with so many other issues to contend with.

Texas

Incumbent GOP Governor Greg Abbott would consider a wide-ranging gaming legalization measure, but he doesn’t have the record of his Democratic opponent, Beto O’Rourke, who has long supported legal betting in Texas.

“We don’t want slot machines at every corner store, we don’t want Texans to be losing money that they need for everyday expenses, and we don’t want any type of crime that could be associated with gaming,” Abbott’s office told the Fort Worth Star-Telegram. “But if there is a way to create a professional entertainment option for Texans, I’d take a look at it in the coming legislative sessions.”

Concern aside, there is some hope gaming will move forward regardless no matter who wins. Abbott is currently leading in the polls.

Georgia

Democrat Stacey Abrams has emphasized legal wagering in her campaign.

Abrams broached the subject in her campaign ads. She also had specific recommendations: A gross sports wagering revenue at 20 percent, similar to Tennessee. The revenue would go towards need-based financial aid for Georgia students. It would also subsidize technical colleges so costs would be free without the need to raise taxes.

“Georgia must provide a pathway for students to secure higher education, especially those who are blocked from receiving this life-changing learning because they can’t afford it,” Abrams said in an August press release.

Georgia’s professional sports teams have come on board in support of such wagering.

Abrams’ opponent, Governor Brian Kemp, has opposed any gaming legalization and is leading in the polls.

South Carolina

South Carolina’s Democratic candidate Joe Cunningham, favors legalization of sports betting, calling it a no-brainer.

“It is time to give South Carolinians the same freedom people in 30 other states enjoy and finally legalize sports betting,” Cunningham said in a press release, adding that legalization will bring in new revenue.

Republican Incumbent Henry McMaster, leading in the polls, opposes sports betting, telling Cunningham to grow up when it became a talking point in a debate.

Florida

Incumbent Florida Governor Ron DeSantis supported a sports betting deal with the Seminole Tribe of Florida. The agreement provides exclusive rights to the tribe. The deal was included in an updated compact with the tribe and is currently tied up in court due to a lawsuit by several state racetracks and casinos.

Democratic opponent Charlie Crist did not reveal his stand on the issue.

Alabama

Alabama Republican Governor Kay Ivey hoped the legislature would put a referendum on the ballot this year so the population would show which direction the state should go.

“I was disappointed that they did not get the gambling bill passed,” Ivey told local news stations. “Not that I am so much for gambling, but I do think the people of Alabama ought to have the right to make that decision.”

Oklahoma

Incumbent GOP Oklahoma Governor, Kevin Stitt, told the Tulsa World he’d accept sports betting but his soured relationship with tribes doesn’t hold much chance for resolution.

Democratic challenger Joy Hofmeister has not brought up sports betting in her campaign.

Minnesota

Minnesota’s legislature has failed a number of times to pass sports betting. The two houses have not been on the same page when it comes to who controls gaming.

Democratic Governor Tim Walz will get behind sports betting, but it must have the support of tribes. His Republican opponent, Scott Jensen, favors sports betting as well.

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