California Mayors Support Sports Betting Measure

Four California mayors, including Oakland’s Libby Schaaf (l.), have endorsed a measure to combat homelessness with revenues from legal sports betting. Eighty-five percent of taxes would go to fund permanent shelter, addiction treatment and mental services.

California Mayors Support Sports Betting Measure

The mayors of Sacramento, Fresno, Oakland and Long Beach, California have backed an initiative by sports betting operators that would allow online sportsbook and the direct taxes raised go to fund services for the homeless.

A number of homeless advocacy groups have also endorsed the measure, including All Home, the Regional Task Force on Homelessness, based in San Diego and the United Way of Greater Los Angeles.

The measure, introduced in August, is also backed by DraftKings, FanDuel and WynnBET, among other sportsbook providers. It would direct 85 percent of money raised from online sports betting taxes to permanent shelter and housing for the homeless, plus services for mental health and addiction treatment. The operators have already allocated $100 million to promote the measure.

It seeks to collect nearly 1 million signatures to qualify for the November 2022 ballot. It would be competing with a measure by a consortium of gaming tribes—the California Legalize Sports Betting on American Indian Lands Initiative—that would limit sports betting to tribal casinos and racetracks. It would not allow mobile sports betting.

However, legally both measures could be passed since they have provisions that don’t exclude the other. If the operators measure is passed, operators would be forced to partner with gaming tribes to offer mobile sportsbooks.

The Golden State has more than 27 percent of the homeless population of the U.S.