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Both California Online, Retail Sports Betting Ballot Initiatives Fail

Robert Linnehan

by Robert Linnehan in Sports Betting News

Updated Nov 9, 2022 · 7:02 AM PST

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  • California will not have online or retail sports betting anytime soon
  • Both Prop 26 and Prop 27 did not come close to necessary yes votes
  • 2024 will be next opportunity for another sports betting initiative

Both California sports betting ballot initiatives have been defeated by state voters, keeping sports betting out of the Golden State until likely 2024 at the earliest.

Despite months of ads, bombardments of information, and by far the most expensive proposition cycle in California election history, the prop defeats were an unsurprising result.

Both Sports Betting Initiatives Have Failed

California voters roundly rejected both Prop 26 and Prop 27, according to election results from the Secretary of State.

With nearly 95% of polls having reported, Prop 27, the “California Solutions to Homelessness and Mental Health Support Act,” only received 16.6% votes in favor of the proposition, well below the necessary 50% for legalization. Prop 27 aimed to legalize California online sports betting for operators partnered with California Tribes.

Prop 26 fared slightly better in the Golden State. Prop 26 received 29.9% yes votes, but again fell well short of what was needed for legalization. Prop 26, “Tribal Sports Wagering Act,” would have legalized retail sports betting for California Tribal Casinos, four state racetracks, and expanded gaming opportunities for tribal casinos.

National news outlets declared defeat for both sports betting propositions within one hour of California polls closing last night.

Representatives for both propositions expressed dismay at the outcome, but declared success that the opposing propositions were also defeated by voters.

“We are grateful to California voters who rejected out-of-state gambling corporations’ deceptive measure and once again stood with California Indian tribes,” said Greg Sarris, Tribal Chairman of the Federated Indians of Graton Rancheria, in a statement from the Coalition for Safe, Responsible Gaming.

“Today’s vote is a show of support for tribal self-reliance and a total rejection of corporate greed.”

A Prop 27 campaign representative said the group always knew the online sports betting initiative would have an uphill climb in California, but remains committed to the state and bringing legalized, safe, and responsible online sports betting to its voters.

“Dozens of states and countless local governments are benefitting from the significant tax revenue that online sports betting provides, and as California faces tax revenue declines and uncertain economic headwinds, online sports betting can provide substantial solutions to fill future budget gaps. Our campaign also demonstrated how the safe and legal online sports betting market in California can provide significant revenue and benefits to California Tribes – both gaming and non-gaming alike,” the campaign representative said in an official statement.

Next Chance 2024

Both propositions faced uphill battles during the general election. With no president election in 2022, voting turnout was always expected to be low in the state, and confusion was also expected among voters with numerous sports betting initiatives on the ballot.

The next election cycle to allow for ballot propositions will be in 2024. Both DraftKings CEO Jason Robins and FanDuel CEO Amy Howe have expressed interest in backing another online sports betting proposition in 2024 for the Golden State.

Both propositions had their allies and opposition. Newly re-elected California Gov. Gavin Newsom (D) publicly decried Prop 27 and the perceived harm it would cause California tribes in the weeks leading up to the election.

“Proposition 27 is bad for California. It would hurt California’s Indian Tribes, increase the risks of underage gambling, and push billions of dollars out of California and into the pockets of out-of-state corporations. Vote No on 27,” Newsom said in a statement to Politico.

Prop 27 had a strong ally in Major League Baseball, which publicly supported the online sports betting initiative, as well as several smaller California tribes, and a number of California mayors that opposed the California tribe-backed Prop 26.

However, it also had its opposition, as both the California Democratic and Republican parties opposed the online sports betting measure (though state Republicans also opposed the retail sports betting measure).

In August, four top California Democrats and GOP lawmakers announced their opposition to the online sports betting initiative. Assembly Speaker Anthony Rendon (D – Lakewood)Senate President Pro Tem Toni Atkins (D – San Diego)Assembly Republican Leader James Gallagher (R – Nicolaus) and Senate Republican Leader Scott Wilk (R – Santa Clarita) released a joint statement condemning Proposition 27 and its support of out-of-state sports betting companies.

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