California County Assn. Opposes Proposition 27 Online Sports Betting Measure

Published on: September 3, 2022, 12:05 p.m.

Last updated: September 3, 2022, 12:43 p.m.

Another group has spoken out against the online sports betting measure, which will go before California voters in November.

Welcome to the California sign
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 constitution and allow online gambling statewide. The group’s executive director said in a statement from Californians for Safe, Responsible Gaming, a tribal-backed committee that opposes Proposition 27.

Prop 27 is offered by seven national sports betting operators. Their proposal would allow national operators to purchase an online sports betting license for $100 million, and the state would adopt a 10 percent tax on gambling revenue. According to the initiative, 85 percent of the tax revenue generated would support programs to combat homelessness and support mental health programs.

California counties are on the front lines of the homelessness and mental health crisis, providing safe programs and services for homeless residents.” said Graham Knaus, the association’s executive director, in a statement. “We have carefully reviewed Prop 27 and concluded that it is a bad deal for the counties and for California. Make no mistake, Proposition 27 is NOT a solution to homelessness.”

An analysis by the California Legislative Analyst’s Office estimated that the measure, if passed, would generate up to $500 million in revenue, though not all of that would necessarily be considered “new” because bettors can spend less on products such as lottery or lottery. retail goods subject to state sales tax. The “Coalition for Safe and Responsible Gaming” claims that 90 percent of the profits generated by bookmakers would end up leaving the state.

Two sports betting measures on the California ballot

CASC is the latest group to come out against Proposition 27. It joins the California League of Cities, both state Democratic and Republican parties, key teachers unions, top legislative leaders and numerous business, labor, civic and of social services.

Prop 27 is one of two measures related to sports betting on the Nov. 8 ballot. Additionally, there is Proposition 26, which would allow 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.

Proposition 26 would also allow private entities to use the Private Attorney General Act (PAGA) to go directly to court and try to stop what they claim is illegal gambling activity. That part of the measure has drawn criticism and opposition from state-licensed card casinos, which believe they would be targeted by the provision. It’s also contested by leaders in several cities across the state, which rely on card casinos for their revenue.

Some who oppose Proposition 27, such as the California Democratic Party, have remained neutral on Proposition 26 due to concerns expressed by unions representing local government workers. The California Republican Party came out against Prop 26 because of PAGA concerns.

Last month, Major League Baseball came out in support of Prop 27.

Almost $400 million raised through campaigns

With two sports betting measures on the same ballot in the country’s most populous state, it has led to a hard-fought campaign between the various parties as they try to get their message across to voters.

Between the groups, more than $394 million had been raised by earlier this month.

Californians for Solutions to Homelessness and Mental Health Support, the pro-Prop 27 committee funded by Bally Bet, Barstool Sportsbook, BetMGM, DraftKings, Fanatics, FanDuel and WynnBET, has raised more than $157 million.

Just this week, according to data from the California Secretary of State Cal-Access databaseFanDuel contributed another $6 million and DraftKings added $999,945 to “Californians for Solutions.”

The Coalition for Safe and 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 this funding came 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 the Cahuilla Indians ($10.1 million) .

Californians for Tribal Sovereignty, another tribal-led group opposing Proposition 27, raised $91.2 million, with $78.1 million coming 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 card casinos. This group raised $41.9 million.

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