Democratic lawmakers in California oppose online sports betting but remain neutral regarding retail betting.
California Democrat Party Stands Against Online Sports Betting Measure, Remains Neutral on Retail Version
The California Democratic Party has chosen to oppose a upcoming ballot measure that seeks to legalize online sports betting in California, while maintaining neutrality on a retail sports betting measure backed by indigenous tribes. Both measures are scheduled for a vote in the November general election.
In a vote by California Democratic Party's Resolutions Committee over the weekend, Democrats rejected an initiative – to be known as Proposition 27 – that would have permitted online sports betting for companies like FanDuel, DraftKings, and BetMGM. The committee's decision implies that online sports betting will continue to remain illegal in California for the time being.
However, the committee opted for neutrality on Proposition 26, a retail sports betting measure supported by indigenous tribes set to authorize sports betting at tribal casinos and licensed horse racetracks. This measure would also legalize dice games and roulette at tribal casinos, and calls for a 10% tax on retail sports bets made at California horse racetracks.
In response to the Democratic Party's decision, Reid Milanovich, Tribal Chairman of the Agua Caliente Band of Cahuilla Indians, stated, "By opposing Prop 27, California Democrats rejected out-of-state corporations and reaffirmed their commitment to California's Indian tribes." He also criticized Proposition 27 as a threat to children, expanding gambling opportunities, and damaging tribal gaming and self-reliance.
Democrats, as the leading political party in California with over 46% of registered voters compared to 24.1% of voters registered as Republicans, possess significant influence in the state.
California Sports Betting to be Decided in November
Proposition 27, which aims to legalize online sports betting for operators partnered with a California tribe, is the focus of a $100 million contribution from various operators such as DraftKings, BetMGM, FanDuel, Fanatics Betting and Gaming, Bally's Interactive, WynnBET, and Penn National Gaming (Barstool Sportsbook). The measure would allocate 85% of tax revenues generated from online sports betting to address homelessness and support mental health programs, while setting aside 15% for California tribes not partnered with an operator.
Alongside Proposition 27, Proposition 26 – backed by a coalition of California tribes – will also appear on the November ballot. This measure will authorize in-person sports betting at tribal casinos and licensed horse racetracks, and legalize dice games and roulette at tribal casinos under a 10% tax on retail sports bets made at California horse racetracks. It will also require California tribes to reimburse the state for costs associated with regulating sports betting.
Voting Procedure and Potential Outcomes
Voters in California will have the opportunity to vote "yes" or "no" on each measure during the general election. If either measure receives more than 50% "yes" votes, it will be approved and put into effect in 2023. If both measures pass, the one with the highest number of votes will go into effect. However, if the retail sports betting initiative receives a higher number of votes, there's a possibility that the backing California tribes may challenge the outcome in court, citing the measures as being in direct conflict with each other.
- The California Democratic Party, in a recent vote, rejected an initiative known as Proposition 27 that would legalize online sports betting for operators like FanDuel and DraftKings.
- Both Proposition 27 and Proposition 26, set to appear on the November ballot, aim to legalize sports betting in California, with the former focusing on online betting and the latter on retail sports betting at tribal casinos and horse racetracks.
- The Committee's decision against Proposition 27 implies that online sports betting will remain illegal in California for the time being.
- In contrast to Proposition 27, the California Democratic Party opted for neutrality on Proposition 26, a retail sports betting measure supported by indigenous tribes.
