California Democrats outline opposition to sportsbook initiatives
Committee unanimously votes to oppose multi-operator-led ballot amid “clapping and cheering” from attendees while questions remain on rival bid
California’s Democratic Party has confirmed its opposition to proposition 27, a multi-operator campaign aimed at expanding the state’s sportsbook market to out-of-state operators.
In a meeting of the California Democrat’s executive board resolution committee, which took place on Sunday afternoon, attendees voted on seven different propositions currently on the ballot.
Addressing proposition 27, or the California Solutions to Homelessness and Mental Health Support Act as it was known during petition gathering stage, delegates voted unanimously to oppose the vote, dealing a blow to the multi-operator campaign.
Resolutions committee votes to oppose #Prop27. Unanimous vote, lots of clapping and cheering in the audience, not a lot of doubt here.
— RL Miller (@RL_Miller) July 10, 2022
Attending the meeting, political lobbyist and Climate Hawks Vote founder RL Miller confirmed the unanimous decision, hinting there had been “clapping and cheering” from audience members and that the final vote had never been in doubt.
The California Solutions to Homelessness and Mental Health Support Act would allow qualified sportsbook operators to partner with California tribal nations to operate online sports betting.
This initiative is backed by DraftKings, BetMGM, FanDuel, Fanatics, Bally’s, WynnBET, and Penn National Gaming, which have all pledged a combined $100m in support.
Proposition 27’s main rival, proposition 26 – the other main sportsbook-facing initiative, also failed to find favor with the California Democratic Party committee, with delegates suggesting they would remain neutral on the ballot initiative.
Central to this neutrality is, according to Miller, the potential for the enforcement of the Act by tribes through private lawsuits, something which she suggested could be “used and abused” by the tribes to drive competitors out of business.
Committee votes to remain neutral on #prop26. Concerned re private right of enforcement, which opponents say tribes would use and abuse to put (unionized) card rooms out of business.
— RL Miller (@RL_Miller) July 10, 2022
Proposition 26, or the Legalize Sports Betting on American Indian Lands Initiative, allows for sports betting on tribal lands, subject to compacts ratified with the state.
It permits on-site sports betting at privately operated horseracing tracks over four counties for individuals aged 21 or over, and imposes a 10% tax on profits made.
Text included in proposition 26 aims to allow the tribes to self-regulate gambling through increased enforcement, with the aim of creating a more secure market.
“Increasing enforcement of existing gambling rules to ensure that all establishments that offer gambling opportunities play by the rules and follow the law,” the text of the Act states.
“These increased enforcement measures will ensure that all lawful gambling is free from criminal and corruptive elements and that it is conducted honestly and competitively by suitable operators and hold gambling enterprises accountable without burdening local law enforcement,” it adds.
Placing these results into context, California’s Democratic Party controls the State Senate, representing 31 of the 40 available seats, a parliamentary majority, so the dismissal will come as a major blow to both campaigns.
The twin propositions are due to be put to a statewide vote in November and, if either is approved, could see sportsbooks coming to the Golden State as early as 2023.