A ballot initiative that would have legalized online sports betting in California has been withdrawn by its proponents after facing strong opposition from a coalition of Native American tribes. The initiative, known as Proposition 27, was backed by several large sports betting companies, including FanDuel, DraftKings, and BetMGM. It would have allowed online sports betting platforms to operate in the state if they partnered with a tribe, and imposed a 10% tax on sports betting revenues and licensing fees. The tax revenue would have been allocated to a fund for homelessness and mental health programs, and a fund for tribes not operating sports betting.
However, the initiative faced fierce resistance from a group of tribes that had already qualified their own sports betting measure for the November ballot. The tribal measure, known as Proposition 26, would allow tribal casinos and the state’s four horse race tracks to offer sports betting, both in-person and online. It would also allow tribal casinos to expand their gambling offerings to roulette and dice games. The tribes argued that Proposition 27 would violate their exclusive rights to offer casino-style gaming in the state, and that it would benefit out-of-state corporations at the expense of tribal sovereignty and economic development.
The proponents of Proposition 27 announced on Monday that they were ending their campaign and withdrawing their measure from the ballot. They cited the lack of support from the tribes and the uncertainty of the legal and regulatory environment for online sports betting in California. They also expressed their disappointment that the state legislature had failed to pass any sports betting legislation in the past two years, despite the growing demand and popularity of the activity among Californians.
The withdrawal of Proposition 27 leaves Proposition 26 as the only sports betting measure on the November ballot. However, the fate of Proposition 26 is also uncertain, as it faces legal challenges from card rooms and other gaming interests that oppose the tribal monopoly on sports betting. The card rooms have filed a lawsuit claiming that Proposition 26 is unconstitutional and misleading to voters, and have asked the court to block it from the ballot. The court has not yet ruled on the case, but a decision is expected soon.
If Proposition 26 survives the legal challenge and passes in November, it would make California the largest state to legalize sports betting in the US. According to some estimates, the state could generate up to $1 billion in annual revenue from sports betting, which could help fund education, public safety, and other state programs. However, if Proposition 26 fails or is blocked from the ballot, California sports betting would remain illegal for the foreseeable future, leaving millions of sports fans and bettors without a legal and regulated option to wager on their favorite teams and events.
