Please ensure Javascript is enabled for purposes of website accessibility
Spending Over California's Legal Gambling Initiatives Breaks Records
gvw_ap_news
By Associated Press
Published 3 years ago on
September 21, 2022

Share

 

The campaign that could bring legalized sports betting to California is the most expensive ballot-initiative fight in U.S. history at about $400 million and counting, pitting wealthy Native American tribes against online gambling companies and less-affluent tribes over what’s expected to be a multibillion-dollar marketplace.

A torrent of advertising has buffeted Californians for months, much of it making promises far beyond a plump payoff from a game wager. Some ads coming from the consortium of gambling companies barely mention online betting.

Instead, the ads tease a cornucopia of benefits from new revenues — helping the homeless, aiding the mentally ill and providing financial security for poorer tribes that haven’t seen a windfall from casino gambling. Further clouding the issue: There are two sports betting questions on the ballot.

The skeptics include Democratic Gov. Gavin Newsom, who hasn’t taken a position on either proposal but has said Proposition 27 “is not a homeless initiative” despite the claims in advertising.

Claremont McKenna College political scientist Jack Pitney said “something for nothing” promises have been used in the past to sell state lotteries as a boundless source for education funding. It’s political salesmanship, “not a cure-all,” he said.

With the stakes high, over $400 million has been raised so far – easily a national record for a ballot initiative fight, and nearly doubling the previous mark in California set in 2020 — with another seven weeks to go until balloting ends on Nov. 8.

“They are spending hundreds of millions because billions are on the line,” said longtime Democratic consultant Steven Maviglio, referring to potential future profits from expanded gambling in the state of nearly 40 million people.

“Both sides stand to really get rich for the long term,” said Maviglio, who is not involved in the campaign. It could become “a permanent funding source for a handful of companies — or a handful of tribes.”

All of it could be a bad bet.

With the midterm elections approaching, voters are in a foul mood and cynical about political sales pitches. And with two similar proposals on the ballot, history suggests that voters are inclined to be confused and grab the “no” lever on both.

“When in doubt, people vote no,” Pitney said.

In California, gambling now is permitted on horse races, at Indian casinos, in cardrooms and the state lottery. But the state has been something of a laggard in sports betting, which has been spreading across the country.

The two proposals would open the way for sports betting, but in strikingly different ways.

Proposition 27 is backed by DraftKings, BetMGM, FanDuel — the latter is the official odds provider for The Associated Press — and other national sports betting operators. The proposal would change state law to allow online sports betting for adults over the internet and on phones or other mobile devices.

Multistate operators would be required to partner with a tribe involved in gambling, or licensed tribes could enter on their own. However, the tribes argue they would have to surrender some of their independence to enter the deal. A tax would cover regulatory costs, with the bulk of the remainder earmarked for homeless programs, and a slice going to tribes not involved in online betting.

A rival proposal backed by many tribes, Proposition 26, would let people wager on sporting events in person at retail locations — casinos operated by tribes and the state’s four licensed horse racing tracks. A portion of a 10% tax would help pay for enforcement of gambling laws and programs to help people who have a gambling addiction. It also could open the way for roulette and dice games at tribal casinos.

A handful of political committees are in the center of the fight, raising funds and dueling for public support.

The Yes on 26, No on 27 committee, sponsored by more than two dozen Indian tribes, has raised about $108 million through this month, state records show. Among the major donors: Federated Indians of Graton Rancheria ($30 million), the Pechanga Band of Indians ($25 million) and the Yocha Dehe Wintun Nation ($20 million). All have been enriched by their own casinos.

Another committee seeking to defeat Proposition 27 is backed by tribes including the San Manuel Band of Mission Indians and has pulled in about $91 million.

Their main rival, the Yes on 27 committee backed by sports betting companies, has generated about $169 million in loans and donations.

A committee opposing Proposition 26, backed by card clubs, has piled up over $41 million for the fight. The proposition includes changes in enforcement that the clubs see as an attempt to give tribes a virtual monopoly on all gaming in the state.

Despite the lofty claims about new income for the state, it’s not clear what the fiscal benefits might be with either proposal.

With Proposition 27, the nonpartisan Legislative Analyst’s Office concluded its effect on revenues and costs are uncertain, in part because it’s not known how many entities would offer betting or how many people would place bets. It’s possible it could bring in hundreds of millions of dollars each year.

But the office also concluded some of the income would not be new dollars since people could shift their spending habits, placing sports bets rather than buying lottery tickets or shopping at the mall.

The state analysts also found the fiscal impacts of rival Proposition 26 are unclear, in part because it’s not known how state-tribal compacts would be modified to allow for sports betting. They found the proposition could increase state revenues, possibly by tens of millions of dollars each year, but would increase costs for enforcement and regulation, too.

A muddle of political endorsements are in the mix. The California Republican Party opposes both proposals. State Democrats oppose Proposition 27, but are neutral on Proposition 26. Major League Baseball is backing Proposition 27.

Voters are witnessing a deluge of competing claims.

The No on 26 committee says wealthy tribes are looking to game the system to gain unprecedented gambling income and political influence.

Rob Stutzman, a spokesman for the No on 27 committee, warned that up to 90% of the profits from the proposal could go to the gambling companies and “you know a measure is bad news when both the Democratic and Republican parties oppose it.”

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Muslim NY Mayoral Candidate Reports Threats, Jewish Ohio Lawmaker Threatened Separately

DON'T MISS

It’s Final. No Live Horse Racing at Big Fresno Fair in 2025

DON'T MISS

Clover Is Eager to Bring You Good Luck and Great Joy

DON'T MISS

Fresno Police Seek Help Identifying 7-Eleven Robbery Suspects

DON'T MISS

Fresno Council Scraps Cannabis Advisory Group, Extends Advance Peace Funding

DON'T MISS

Buss Family to Sell Lakers at $10 Billion Valuation, ESPN Says

DON'T MISS

Massive Security Breach: 16 Billion Passwords Leaked From Apple, Google, Facebook Accounts

DON'T MISS

‘I’m an American, Bro!’: Latinos Report Raids in Which US Citizenship Is Questioned

DON'T MISS

Florida Congresswoman to Revive Bipartisan Immigration Bill. Valley Leaders Join the Push

DON'T MISS

LA Dodgers Say They Denied ICE Agents Access to Stadium Parking Lot

UP NEXT

Buss Family to Sell Lakers at $10 Billion Valuation, ESPN Says

UP NEXT

LA Dodgers Say They Denied ICE Agents Access to Stadium Parking Lot

UP NEXT

Hunger Strike Begins as California Prisons Hand Down Biggest Restrictions Since COVID

UP NEXT

CA Prison Union Strikes $600 Million Contract With Newsom That Includes Furloughs

UP NEXT

Canseco, Cheechoo to Sign Autographs When Chukchansi Cuts Ribbon on Top Golf

UP NEXT

California Man Accused of Planting Cameras in Children’s Dance Studio Bathroom

UP NEXT

Buss Family to Sell Lakers, Report Says

UP NEXT

California Men Arrested in Largest Jewelry Heist in US History

UP NEXT

‘A Time of Bitter Celebrations’: Joy and Fear as LA Students Graduate Amid ICE Raids

UP NEXT

Newsom Gave Political Rival a $380K Job. See the Special Interests Who Paid for It

Fresno Police Seek Help Identifying 7-Eleven Robbery Suspects

12 hours ago

Fresno Council Scraps Cannabis Advisory Group, Extends Advance Peace Funding

12 hours ago

Buss Family to Sell Lakers at $10 Billion Valuation, ESPN Says

12 hours ago

Massive Security Breach: 16 Billion Passwords Leaked From Apple, Google, Facebook Accounts

12 hours ago

‘I’m an American, Bro!’: Latinos Report Raids in Which US Citizenship Is Questioned

13 hours ago

Florida Congresswoman to Revive Bipartisan Immigration Bill. Valley Leaders Join the Push

14 hours ago

LA Dodgers Say They Denied ICE Agents Access to Stadium Parking Lot

14 hours ago

Netanyahu Says Fall of Iran’s Leadership Not a Goal but Could Be a Result

14 hours ago

Hunger Strike Begins as California Prisons Hand Down Biggest Restrictions Since COVID

15 hours ago

Sen. Alex Padilla: This Is How an Administration Acts When It’s Afraid

15 hours ago

Muslim NY Mayoral Candidate Reports Threats, Jewish Ohio Lawmaker Threatened Separately

WASHINGTON – The New York City Police Department said on Thursday its hate crime unit was probing anti-Muslim threats against mayoral ...

10 hours ago

Assemblyman Zohran Mamdani talks to people after the New York City Democratic Mayoral Primary Debate at the John Jay College of Criminal Justice in the Gerald W. Lynch Theater in New York City., U.S., June 12, 2025. (Reuters File)
10 hours ago

Muslim NY Mayoral Candidate Reports Threats, Jewish Ohio Lawmaker Threatened Separately

11 hours ago

It’s Final. No Live Horse Racing at Big Fresno Fair in 2025

11 hours ago

Clover Is Eager to Bring You Good Luck and Great Joy

Fresno police are seeking the public’s help to identify two suspects involved in a May 31, 2025, robbery at a 7-Eleven on East McKinley Avenue. (Fresno PD)
12 hours ago

Fresno Police Seek Help Identifying 7-Eleven Robbery Suspects

12 hours ago

Fresno Council Scraps Cannabis Advisory Group, Extends Advance Peace Funding

12 hours ago

Buss Family to Sell Lakers at $10 Billion Valuation, ESPN Says

12 hours ago

Massive Security Breach: 16 Billion Passwords Leaked From Apple, Google, Facebook Accounts

13 hours ago

‘I’m an American, Bro!’: Latinos Report Raids in Which US Citizenship Is Questioned

Help continue the work that gets you the news that matters most.

Search

Send this to a friend