California Prop 26 & Prop 27: How Sports Betting Would Look Under Every Election Outcome

In a number of weeks, California voters head to the poll field to determine the way forward for authorized sports activities betting within the Golden State as they vote on Prop 26 and Prop 27.

The Nov. 8 statewide election might play out in a number of alternative ways — every election final result impacting if sports activities betting turns into authorized in California and the way and the place bettors will be capable of place their bets, be it by means of on-line apps or in-person.

Early voting has already began, so to clear by means of the confusion between two competing payments on the poll, we created this information for each sports activities betting-related final result based mostly on whether or not Prop 26 and Prop 27 every cross or fail.

Prop 26 & 27 Voting Outcomes

What You Must Know About California’s Prop 26 and Prop 27

What precisely is being voted on with Prop 26: Prop 26 would particularly legalize in-person sports activities betting in California at choose tribal casinos and racetracks.

What precisely is being voted on with Prop 27: Prop 27 would particularly legalize on-line sports activities betting statewide, clearing the best way for a dozen business sportsbook apps.

Every prop can cross independently, and each can cross or each can fail; their election outcomes bear no influence on the opposite’s potential to be handed by the voters.

On-line Sports activities Betting Turns into Authorized

… if Prop 27 will get greater than 50% of the vote

If greater than 50% of California voters choose “Sure” on Proposition 27, also called the California Options to Homelessness and Psychological Well being Help Act, on-line sports activities betting turns into authorized, and 11 operators doubtless be part of as California’s authorized sportsbooks.

Anybody in California over the age of 21 and never situated on tribal land would be capable of place bets on-line by September 2023 on the newest.

Betting on faculty sports activities (together with in-state groups), the Oscars, eSports and league-awards like NFL MVP would all be allowed. (Different states like New York and New Jersey restrict or exclude these.)

The invoice imposes heavy monetary necessities that would forestall smaller apps from getting into the market: a $100 million licensing charge (4 occasions New York’s, the present highest state) and a $10 million renewal charge each 5 years.

It additionally requires that operators are already licensed in 10 states, or personal 12 casinos and function in no less than 5 states. Below these situations, solely a few dozen apps qualify:

Every must accomplice with one among California’s 110 federally acknowledged tribes. Whereas many tribes in California have opposed Prop 27, not all have. Tribes might additionally provide sports activities betting, however they’d have to surrender rights below federal legislation and be topic to additional state regulation.

Operators would pay a ten% tax on income, which is low in comparison with different states like New York, the place they pay 51%, and Pennsylvania, the place they pay 36%.

Eighty-five % of that income could be used to ship everlasting and interim housing throughout the state. Extra tax income could be despatched to California tribes.

Ought to Prop 27 cross, chances are high excessive that some California tribes would sue to cease it, Kathy Fairbanks, a spokeswoman with “No on 27,” instructed the Motion Community.

Most of California’s tribes staunchly oppose Prop 27, as it might permit business competitors, disrupting their monopoly on California gaming and create an eventual path for iGaming. They’ve spent $233 million to cease it.

In-Particular person Sports activities Betting Turns into Authorized at Choose Areas

… if Prop 26 greater than 50% of the vote

If greater than 50% of California voters choose “Sure” on Proposition 26, sports activities betting turns into authorized in-person at as much as 66 casinos and 4 racetracks.

Anybody in California over the age of 21 would be capable of place a guess at a tribal on line casino that amends its state compact to supply sports activities wagering, or at a privately owned racetrack.

These compacts would should be ratified by the California legislature, which might take a few 12 months, in response to Kathy Fairbanks, a spokesperson for the tribes campaigning towards Prop 27.

Betting on faculty sports activities would stay unlawful, and California would be part of Oregon as the one two authorized betting states with an outright ban on betting on faculty sports activities.

Tribes and racetracks would pay a ten% tax on income, with 70% of proceeds despatched to the Normal Fund, 15% to applications that tackle drawback gaming and 15% to fund business regulation.

On-line and In-Particular person Sports activities Betting Each Grow to be Authorized

… if Prop 26 and Prop 27 every surpass 50% of the vote

Usually, competing measures on the California poll imply the one with probably the most votes supersedes the opposite.

However Prop 27 is written in a manner that on-line sports activities betting and in-person sports activities betting can each grow to be authorized if every measure will get 50% of the vote. That will imply round a dozen sports activities betting apps by September 2023 and in-person betting doubtless launching a number of months later.

Tribes would doubtless sue in any state of affairs the place Prop 27 passes. They’ve claimed that would delay sports activities betting for some time, however it’s unclear how a decide may rule. The gaming corporations backing Prop 27 aren’t prone to sue below any of those situations.

California Sports activities Betting Stays Unlawful 

Prop 26 and Prop 27 each fail 

Sports activities betting will stay unlawful in California if neither poll measure surpasses 50% of “Sure” votes.

Subsequent path for authorized sports activities betting?

The native tribes opposing Prop 27 and backing Prop 26 are working to carry their very own on-line sports activities betting measure to the poll in 2024.

FanDuel and DraftKings have additionally expressed curiosity within the 2024 poll.

At a current gaming business convention, FanDuel CEO Amy Howe vowed business operators “will stay to combat one other day” ought to it come to that.

Her feedback got here in response to a UC Berkley ballot that initiatives each propositions to fail. If that occurs, California could be the primary state the place voters reject authorized sports activities betting.