California Sports Betting: Democrats Oppose Online Wagering Measure, Stay Neutral on Retail

California’s Democratic Party announced on Sunday its support for several ballot measures — but not for the two legal sports betting initiatives that will go before voters in November.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne • Senior News Analyst
Jul 11, 2022 • 13:24 ET • 2 min read
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The ballot measure that aims to bring online sports betting to California has run afoul of the political party that holds the levers of power in the Golden State.

California’s Democratic Party announced on Sunday its support for several ballot measures — but not for the two legal sports betting initiatives that will go before voters in November. 

Instead, the Democrats — who hold majorities in the legislature, and occupy the governor's office — voted to oppose Proposition 27, which would legalize online sportsbooks in the state, and to remain neutral on Proposition 26, which would allow for in-person sports betting at tribal casinos and horse-racing tracks. 

However, that outcome was viewed as a win by supporters of the tribal-backed, retail-only Proposition 26. Although the Democrats won’t throw their support behind the initiative, it appears that they will at least avoid fighting it. 

“By opposing Prop 27, California Democrats rejected out-of-state corporations and reaffirmed their commitment to California’s Indian tribes,” said Reid Milanovich, tribal chairman of the Agua Caliente Band of Cahuilla Indians, in a press release

Deep pockets

Still, it’s not clear yet whether or not voters will approve or reject either sports-betting proposition. And while Proposition 27 may lack support from state Democrats, it has plenty of financial backing from major sportsbook operators such as BetMGM, DraftKings, and FanDuel

Those proponents of the online-betting initiative claim it would provide hundreds of millions of dollars a year in tax revenue to the state to help fund interim and permanent housing. If passed, the measure would allow for online sports betting via partnerships with Native American tribes.

“The initiative achieves this by licensing, tightly regulating, and taxing online sports betting,” the website for Californians for Solutions to Homelessness and Mental Health Support says. “In 2018, the Supreme Court ruled states could legalize betting on sports, and nearly half of the country has safely authorized online sports betting, generating revenue windfalls to fund state priorities.”  

Yet the opponents of Proposition 27 say it would instead increase the risk of addiction and potentially expose underage residents to online gambling. 

“Prop 27 is not a solution to anything,” Milanovich said in the press release. “It would expose children to a massive expansion of gambling and turn every cell phone, gaming console, tablet and laptop into a gambling device. Prop 27 is a direct attack on tribal gaming and Indian self-reliance.” 

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff’s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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