Now that the mobile sports betting proposal (Prop 27) for California backed by DraftKings, BetMGM, FanDuel and other major online sports books has been certified to appear on the November ballot, the race is on and the first one to $100 million may not win. Facing off against a tribal-backed sports betting referendum (Prop 26) that would limit sports betting to retail locations at tribal casinos and racetracks, the very real possibility of both measures passing will ramp up spending.
The stakes are high. With a California sports betting industry estimated to be worth at least $3 billion, both sides have amassed at least $100 million in campaign funds. In the past, the state tribes have won every statewide referendum seeking to legalize and expand Indian gaming, pouring millions into the campaigns and far outspending their opponents. This time, however, both sides come armed with deep pockets.
Because both measures put the state’s sports betting under the control of the tribes, there has been a couple of tribal defections in support of the online bill, dubbed the “Solutions Act” because 85 percent of the revenues would be devoted to homelessness and mental health, with the remainder dedicated to economic development for non-gaming tribes. Last week two of those tribes, the Middletown Rancheria of Pomo Indians and the Big Valley Rancheria Band of Pomo Indians, threw their support behind the mobile betting bill.
“We’re supporting the Solutions Act because it gives us an opportunity to protect our sovereignty and also create opportunities for economic wealth for the next seven generations for our tribe,” Jose “Moke” Simon, chair of the Middletown Rancheria of Pomo Indians, told the San Francisco Chronicle.
“It also helps the state of California deal with some of the biggest problems that it has here, that is affecting every community, which is homelessness and mental health issues,” he said.
California voters can expect to be bombarded by advertising. Kathy Fairbanks, a spokeswoman for the tribal initiative, said, “We’ll be using every medium to communicate with voters.”
On the online side, spokesman Nathan Click said a massive voter education campaign would be waged.
“We will ensure Californians have the facts of what our measure does, and we will work to ensure that Californians understand our measure,” said Click.
For Prop 26, the in-person betting is limited to tribal casinos and the state’s four thoroughbred racetracks. Racetracks would pay a $10 million fee to offer the wager and tribes would be permitted to add roulette and craps to their current list of approved games. The measure would also allow any citizen to file a civil suit against anyone allegedly conducting illegal gaming activity in the absence of litigation by the California attorney general.
According to state financial analysts Prop 26 would raise “potentially reaching the low tens of millions” in taxes for the state on an annual basis.
Prop 27, meanwhile, would charge $100 million for licenses, with tribes paying $10 million for online licenses, but with limited branding, and would generate, according to the state, revenues “potentially reaching in the mid-hundreds of millions” annually.
