Proposition 26 or 27? How to make sense of dueling California sports bet ballot questions
Emotion-evoking info-commercials, coupled with mass texts and emails have muddled dueling sports betting ballot measures Proposition 26 and 27 to teeter the ledge of misleading.
With the California 2022 general election just weeks away and ballots hitting mail boxes, The Bee has broken down what propositions 26 and 27 propose and what a vote for or against each could mean for California.
Before we dive in, get these key terms under your belt:
1. Tribal lands - any federally recognized Native American tribe’s reservation, town or colony
2. Tribal casinos - In California, 66 casinos operate in 28 counties under an agreement made between certain tribes and the state
3. Sports wagering - another term for sports betting, which is illegal in California
Here’s what you need to know about propositions 26 and 27 before you cast your ballot for California’s Nov. 8 general election:
What is Proposition 26?
Proposition 26, according to California’s general election voter information guide, legalizes in-person sports betting, roulette and dice games at tribal casinos and racetracks. The measure is supported by a coalition of 31 federally-recognized Native American tribes, and opposed by card room businesses that compete with tribal casinos.
The proposition bans certain bets on sports including both high school and college games. You must be at least 21 to bet at racetracks.
It would generate an estimated $1.6 billion in annual profits and tens of millions in tax revenue.
California would collect 10% of sports bets made at racetracks each day, subtracting prize payments, and funnel it into a California Sports Wagering Fund. The money, according to the state’s general election voter information guide, will be used for the following:
▪ California schooling
▪ California’s regulatory costs
▪ California’s general fund
▪ Gambling addiction and mental health programs
▪ Sports betting and gambling enforcement costs
If tribal casinos don’t agree to funnel payments through the CSWF, the institutions must at least pay the state for “regulating sports betting at tribal casinos.”
Here are a couple of ways, according to the state’s general election voter information guide, allowing in-person roulette, dice games and sports wagering on tribal lands could affect California:
▪ Increased state revenues
▪ Increased state regulatory costs
▪ Increased state enforcement costs
Lastly, Prop. 26 includes a new way to enforce gambling laws. It allows people or institutions to file a civil lawsuit and ask for penalties of up to $10,000 in a state trail court if they believe someone broke a gambling law.
A vote for Proposition 26
A vote for Prop. 26, according to the California Secretary of State’s website, could authorize in-person sports betting at tribal casinos and racetracks. Tribal casinos could also offer in-person roulette and dice games.
There would also be a new way to enforce certain gambling laws.
A vote against Proposition 26
A vote against Prop. 26, according to the California Secretary of State’s website, means sports betting would continue to be illegal.
Tribal casinos would not to be allowed to offer roulette and dice games. No changes would be made to how gambling laws are enforced.
What is Proposition 27?
Those placing bets must be in California, not on tribal lands and be at least 21.
The ballot measure allows bets on athletic and some non-athletic events. Betting on high school games and elections would remain illegal.
The measure would generate an estimated $3 billion in annual profits and up to $500 million in tax revenue. The state would require the participating gambling companies and licensed tribes to pay licensing fees and a 10% tax on “sports-wagering revenues.”
The money collected from the companies and tribes, according to state’s general election voter information guide, would go into the Online Sports Betting Trust Fund. The money would be used for the following:
▪ State’s regulatory costs
▪ Homelessness programs
▪ Nonparticipating tribes
Proposition 27 would require a new regulatory team.
Here are a couple of ways, according to the state’s general election voter information guide, legalizing online and mobile sports betting for adults could affect California:
▪ Increase of state revenues
▪ An increase of state regulatory costs
A vote for Proposition 27
A vote for Prop. 27, according to the California Secretary of State’s website, means licensed tribes and gambling companies could offer online sports betting to those 21 and older.
A state team would be created to regulate online sports betting.
A vote against Proposition 27
A vote against Prop. 27, according to the California Secretary of State’s website, means sports betting would continue to be illegal in California.
No changes would be made to how gambling laws are enforced.
This story was originally published October 17, 2022 at 5:30 AM with the headline "Proposition 26 or 27? How to make sense of dueling California sports bet ballot questions."