Posted on: September 3, 2022, 12:05 PM.
Last updated: September 3, 2022, 12:43 PM.
Steve Bittenbender Read more
Another group has spoken out against the online sports betting measure that will be presented to voters in California in November.
A Welcome to California sign on Interstate 10 just past the Arizona state line. On Friday, the California State Association of Counties announced its opposition to a proposed constitutional amendment that would legalize online sports betting in the state. (Image: spiritofamerica/Adobe Stock Images)
On Friday, the California State Association of Counties (CASC) announced its opposition to Proposition 27, a measure to amend the state’s constitution to allow statewide online betting. The group’s executive director stated in a release of “Californians for Safe, Responsible Gaming,” a tribal-backed committee opposing Prop 27.
Prop 27 is offered by seven national sports betting providers. Their proposal would allow national operators to acquire an online sports betting license for $100 million, and the state would introduce a 10% tax on gambling revenues. Under the initiative, 85% of tax revenues generated would go to programs to combat homelessness and support mental health programs.
California counties are on the front lines of the homelessness and mental health crisis, providing safety net programs and services for out-of-home residents,” Graham Knaus, the association’s executive director, said in a statement. “We have carefully reviewed Prop 27 and have come to the conclusion that it is a bad deal for the counties and for California. Make no mistake, Prop 27 is NOT a solution to homelessness.”
A review by the California Legislative Analyst’s Office predicted that the measure, if passed, would generate up to $500 million in revenue, although not everything would necessarily be considered “new” as gamblers may spend less on products like the lottery or retail goods subject to state sales tax. “Coalition for Safe, Responsible Gaming” states that 90% of the profits generated by the sportsbooks would leave the state.
Two measures for sports betting on California Ballot
CASC is the latest group to speak out against Prop 27. It joins the California League of Cities, both Democratic and Republican state parties, major teacher unions, top legislative leaders, and numerous business, labor, civic and social service organizations.
Prop 27 is one of two sports betting-related measures on the November 8 vote. In addition, there is Proposition 26, which allows tribal casinos and state-licensed racetracks to host retail sportsbooks. Prop 26 would also allow tribal casinos to add roulette and dice-based table games to their properties.
Prop 26 would also allow private entities to use the Private Attorney General Act (PAGA) to go directly to court and try to end what they believe to be illegal gambling activities. That part of the measure has drawn criticism and opposition from state-approved cardroom casinos, who believe they would be the target of that provision. It is also being challenged by leaders from several cities in the state who depend on cardroom casinos for their income.
Some who oppose Prop 27, such as the California Democratic Party, have remained neutral on Prop 26 due to concerns from unions representing local government employees. The California Republican Party came out against Prop 26 over PAGA’s concerns.
Last month, Major League Baseball came out in support of Prop 27.
Nearly $400 million raised through campaigns
With two sports betting measures on the same ballot as the country’s most populous state, it has sparked a hard-fought campaign between the different parties as they try to get their message across to voters.
More than $394 million has been raised between the groups as of early this month.
“Californians for Homelessness Solutions and Mental Health Support,” the pro-Prop 27 commission, funded by Bally Bet, Barstool Sportsbook, BetMGM, DraftKings, Fanatics, FanDuel and WynnBET, has raised more than $157 million.
According to data from the California Secretary of State’s Cal-Access database, FanDuel contributed another $6 million this week and DraftKings added $999,945 to “Californians for Solutions.”
The “Coalition for Safe, Responsible Gaming”, which is also a pro-Prop 26 group, along with its opposition to Prop 27, has raised $104.2 million from 10 tribal nations. Most of that funding has come from the Federated Indians of Graton Rancheria ($35.2 million), the Pechanga Band of Indians ($25.3 million), the Yocha Dehe Wintun Nation ($20.2 million), and the Agua Caliente Band of Cahuilla Indians ($10.1 million).
“Californians for Tribal Sovereignty,” another tribal-led group opposing Prop 27, has raised $91.2 million, of which $78.1 million came from the San Manuel Band of Mission Indians.
The other group involved in the debate is “Taxpayers Against Special Interest Monopolies,” an anti-Prop 26 group funded by cardroom casinos. That group has raised $41.9 million.
This post California Counties Assn. Opposed to Prop 27 Measure for Online Sports Betting
was original published at “https://www.casino.org/news/california-counties-group-opposes-prop-27-online-sports-betting-measure/”