SACRAMENTO, Calif. (KRON) — The Proposition 27 and Proposition 26 ads were hard to miss on TV this summer. Why are there two sports betting measures in the November vote?
Sports betting — minus horse racing — is currently illegal in California.
The two proposals will essentially ask California voters the same question: Should sports betting be legalized? By narrowing the differences between the two propositions, Prop 27 would allow online sports betting everywhere, while Prop 26 would allow gamblers to place bets in person at Native American tribal casinos and four horse racing tracks.
Prop 26 is supported by Native American tribes, while online gaming companies are pushing for Prop 27.
“A coalition of tribes has spent more than $30 million to qualify a measure (Prop 26) that would allow for personal sports betting at reservation casinos and horse racing tracks. A coalition of online sportsbooks, such as FanDuel and Draftkings, along with casinos in Las Vegas, is funding a measure (Prop 27) that will allow Californians to place bets through their computers and mobile apps,” Politico wrote.
Theorem 27
Prop 27 would allow tribes, as well as betting companies that deal with tribes, to offer mobile and online sports betting for adults 21 and older. Major gaming companies like DraftKings would be first in line to make a deal with one of California’s 79 tribes.
The proposal would legalize online gambling for athletic events (such as NFL football games) and some non-athletic events (such as video game competitions). However, it prohibits betting on certain events, such as high school sports competitions.
Both tribes and gambling companies should pay taxes to California for online sports betting. An analysis conducted by state officials estimated that taxes and duties would amount to hundreds of millions of dollars each year. That money would be spent on funding homelessness and gambling addiction programs, as well as funding Native American tribes who do not participate in sports gambling.
YES / NO STATEMENT
“A YES voting on this measure means licensed tribes or gambling companies can offer online sports betting via the web and mobile devices to people 21 and older in non-tribal areas in California. Those who offer online sports betting should pay the state a portion of the sports betting made. A new state unit would be created to regulate online sports betting. New ways would become available to reduce illegal online sports betting.”
“A NO voting on this measure means sports betting will remain illegal in California. There would be no changes to the way state gambling laws are enforced.”
Theorem 26
Prop 26 allows racetracks to offer sports betting to people 21 and older. All bets must be made in person on the course. The proposal also requires racetracks to pay the state 10% of sports bets made each day. These payments would go to a new California Sports Wagering Fund.
In addition to personal sports betting, Proposition 26 changes the California Constitution to allow roulette and dice games in tribal casinos.
Proposition 26 would generate tens of millions of dollars in state revenue each year, according to an analysis by state officials. It requires CSWF revenue to be considered state tax revenue to calculate the minimum amount of expenditure for K-12 schools and community colleges each year. This means that CSWF money would first be used to meet this required level of education spending.
The proposal requires the money from the fund to be then used to support the costs of government regulation. The remaining money would go to the state’s general fund, as well as to programs that address gambling addiction, mental health and gambling enforcement.
YES / NO STATEMENT
“A YES voting on this measure means: four circuits can offer personal sports betting. Racetracks would pay the state a portion of the sports bets made. Tribal casinos could offer personal sports betting, roulette, and dice games (such as craps) if allowed by individual tribal gambling agreements with the state. Tribes would be required to support legal fees for sports betting in casinos. People and entities would have a new way of striving to enforce certain state gambling laws.”
“A NO voting on this measure means sports betting will remain illegal in California. Tribal casinos would still not be able to offer roulette and dice games. There would be no changes to the way state gambling laws are enforced.”
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