California Sports Betting Props: What Voters Have Faced and Why They Failed
California, the most populous state in the U.S., has yet to legalize online sports betting despite numerous efforts through ballot propositions. In recent years, especially during the 2022 midterm election cycle, California voters were presented with two high-profile propositions: Proposition 26 and Proposition 27. Both aimed to introduce legal sports wagering in the state but in drastically different ways. Ultimately, both failed. Here’s an in-depth breakdown of what these props entailed, why they were significant, and what their failure means for the future of California sports betting.
Proposition 26: Tribal Casino Sports Betting
Proposition 26, backed by a coalition of Native American tribes, aimed to legalize in-person sports betting at tribal casinos and certain horse racetracks. The prop also included a provision that allowed tribes to offer dice games and roulette, which are currently prohibited under California law. Notably, Prop 26 did not allow for online sports betting or mobile wagering.
The tribal coalition argued that this initiative would uphold their sovereignty and generate economic benefits for tribal communities. However, critics raised concerns about a clause in the measure that would enable private entities to sue cardrooms for alleged violations of gaming laws, potentially endangering thousands of jobs in communities reliant on those facilities.
Key Features of Prop 26:
- In-person sports betting only
- Limited to tribal casinos and horse racetracks
- No online or mobile betting
- Legalization of additional casino games (e.g., roulette, dice)
- Strong opposition from cardrooms and business groups
Proposition 27: Online Sports Betting for Commercial Operators
Proposition 27 was promoted primarily by major online betting companies such as DraftKings, FanDuel, and BetMGM. It sought to legalize online and mobile sports betting statewide, allowing licensed operators to partner with California tribes. A significant portion of the tax revenue, as promised in the proposal, would go toward combating homelessness and mental health issues.
However, tribal groups widely opposed Prop 27, seeing it as an intrusion into their gaming rights and a direct threat to tribal sovereignty. Despite substantial advertising campaigns and massive funding from both sides, voters overwhelmingly rejected the measure.
Key Features of Prop 27:
- Legalization of online and mobile sports betting statewide
- Open to commercial operators with tribal partnerships
- 10% tax on betting revenue
- Revenue directed to homelessness and mental health services
- Fierce opposition from tribal coalitions
Voter Reaction and Outcome
Despite a record-setting amount of money spent on campaigning (over $450 million combined), both propositions were soundly defeated in the November 2022 election. Prop 26 received only about 30% of the vote, while Prop 27 fared even worse, with less than 20% support. The results highlighted a key reality: California voters were either confused by the competing proposals or fundamentally opposed to legalizing sports betting in the form presented.
Why the Propositions Failed
There were several reasons for the failure of both props:
- Confusing Messaging: With two competing propositions offering starkly different visions for sports betting, many voters were overwhelmed or unclear about the implications.
- Aggressive Campaigning: Both sides inundated voters with conflicting ads, making it hard to distinguish fact from fearmongering.
- Tribal Sovereignty Concerns: Many Californians respect tribal sovereignty and were wary of Prop 27’s potential to erode tribal control over gaming.
- Social Concerns: Some voters were concerned about the societal impact of legal online betting, such as addiction and youth gambling.
- Lack of Unified Support: The absence of a single, unified initiative supported by both commercial operators and tribal nations created division and diluted voter confidence.
What’s Next for California?
The failure of Propositions 26 and 27 delayed the introduction of legal sports betting in California, but it didn’t kill the idea entirely. Future efforts are already being discussed, with possible new ballot measures being drafted for upcoming election cycles.
A more collaborative proposal—potentially combining online and in-person betting while protecting tribal interests—may have a better chance of success. California remains a highly coveted market for sports betting operators, and the pressure to tap into its economic potential will continue to mount.
Conclusion
The California sports betting propositions of 2022 were a historic attempt to bring legal wagering to the Golden State. However, the competing interests of tribes and commercial operators, coupled with voter uncertainty and mistrust, led to a resounding rejection. Moving forward, stakeholders will need to work together more strategically if they hope to gain voter approval and finally legalize sports betting in California.
