California worker groups line up to oppose tribal sportsbook ballot initiative
20,000-strong municipal employees’ union joins cardroom-backed campaign against Proposition 26
A 20,000-strong California workers union has confirmed its opposition to Proposition 26, a ballot looking to give tribal casinos exclusivity over sports betting.
The American Federation of State, County and Municipal Employees (AFSCME) District 36 Council, which represents more than 60 local businesses and 20,000 workers from California municipalities, has fallen in with the main opposition group, Taxpayers Against Special Interest Monopolies (TASIM).
The Los Angeles-based council represents workers from California municipalities, legal aid organizations, and non-profit social services.
An additional three AFSCME local councils have also signed on with TASIM, which is funded by a coalition of California cardrooms. The quartet join the California Contract Cities Association, a group representing 80 cities in the Golden State plus a number of California-based veterans organizations.
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.
This self-regulation comes through usage of the Private Attorney General Act (PAGA), which allows private entities to file complaints against organizations they suspect are acting illegally in their respective operations.
It is this so-called ‘poison pill’ clause which has drawn the AFSCME’s opposition, with the group suggesting that the act will be abused by the tribes in order to bankrupt rivals operating in the state.
In a statement, AFSCME councilmember Shavon Moore-Cage suggested the closure of these cardrooms could be hugely damaging to the state through lost tax revenue.
“When city revenues are cut, public employee jobs like mine are at stake,” Moore-Cage said.
“This is not just a hypothetical statement…I don’t want my union brothers and sisters to suffer the same fate, especially when it can be avoided,” she added.
While advocates for Proposition 26 have insisted the tribes will not misuse this power, AFSCME is not the only group to question its use.
Earlier this month, the California Democratic Party confirmed it would remain neutral in its stance towards the ballot initiative, citing similar concerns to those expressed by AFSCME.
In a meeting of the California Democrats’ executive board resolution committee, the party also elected to oppose Proposition 27, the ballot initiative backed by a coalition of US sportsbook operators including DraftKings, BetMGM, and FanDuel.