In what seems like the final nail in the coffin of Proposition 27, one of two dueling (and possibly both doomed) bills to legalize sports betting in California, Governor Gavin Newsom publicly voiced his opposition to the sportsbook-backed legislature.
Newsom issued a statement yesterday, which could well have been mistaken for a campaign ad, on behalf of the native tribes and their broad-based California coalition opposing the bill, which would remove the tribes' long-standing dominance over gaming in the Golden State and place more control in the hands of various sports betting sites.
"Proposition 27 is bad for California," read the Governor's statement. "It would hurt California’s Indian Tribes, increase the risks of underage gambling, and push billions of dollars out of California and into the pockets of out-of-state corporations. Vote No on 27."
With voters heading to the ballot box on November 8 to decide the Californian gubernatorial race — Newsom is cruising to a landslide re-election win — the Governor's late-stage announcement effectively ended the bid by operators to bring legal sports betting to the state for at least another two years... until the next electoral cycle in 2024.
Go ahead, hit us one more time
And just to make sure the sportsbooks' bill stays dead and buried this time around, the Public Policy Institute of California (PPIC) released its final poll on the November mid-term elections and found that likely voters now oppose Prop 27 by a staggering 67% to 26% margin.
This is the worst polling result thus far for the bill and reveals that Californians ultimately hardened their anti-sportsbook, anti-online sports betting sentiment as the $500 million dueling ad wars between operators and tribes dragged on.
The PPIC poll also showed that likely voters were also ready to defeat Proposition 26, the rival tribal betting bill that would maintain native groups' control over wagering in California, by an also decisive 57% to 34% margin.
Only 31% of likely voters surveyed regarded the sportsbooks' Prop 27 as "important" as compared to an even smaller number (21%) that expressed any such interest in the tribal bill. Overall, 48% of respondents viewed the legalization of sports betting as a "bad thing."
Governor aligns with broad California coalition
Newsom's belated decision to take a stance on the bill brought him into political alignment with virtually every major state organization and the 51 native tribes that banded together to defeat Proposition 27.
Those groups opposing the sportbooks' bill include both state Democratic and Republican parties and their respective leaders, the California State Association of Counties (CSAC), which represents all 58 counties in the state, the California League of Cities, and the major teachers’ unions. Even organizations geared towards helping the homeless — Step Up, Goodwill Southern California, and the San Bernadino Corps of The Salvation Army — joined the No campaign even though they would have benefited to some degree from the sports betting tax revenues.
Upon learning of Gov. Newsom's opposition to the sportsbook-backed bill, Kathy Fairbanks, official spokesperson for the No on 27 campaign, issued her own statement expressing satisfaction of his defense of tribal interests.
"Thanks to the governor for joining our broad, bipartisan coalition opposed to this deceptive online gambling proposition," said Fairbanks. "Prop 27 benefits the out-of-state corporations at the expense of Californians."
Why did Newsom wait so long?
It remains something of a mystery that Newsom waited until the very last minute to throw his lot with the tribes — and oppose a bill that was highly unpopular from the beginning in a left-leaning state, which is wary of the dangers of gambling addiction and gaming in general.
The governor, a possible presidential candidate in 2024 (although he stated in a recent debate that he intended to serve out his full four-year term if re-elected in November), had already indirectly criticized Prop 27 for not being a "homeless" bill.
This remark also reflected the widespread view amongst voters and homeless organizations that the sportsbooks were attempting to mislead Californians by labeling Prop 27 as a "Homeless Solutions" bill... without stating its principal intent — to legalize online sports betting.
Newsom has also previously been a supporter of tribal causes, dating back to June 2019, when he issued an apology to tribal nations for past atrocities committed against indigenous peoples. This year alone, Gov. Newsom proposed legislation that would provide $100 million in funding to 200 native tribes, which would go towards buying up land that is part of his strategic plan to conserve 30% of the state's land and waters by 2030.
In the end, it may well have come down to a political calculation to wait until it was clear that Prop 27 was going down to defeat before going on the record at such a late date — when his opinion would have no influence on the vote and he would not risk alienating the lucrative sports betting industry.
