One thing you have to give the folks in California. They don’t take no for an answer. Even when it’s a resounding no.
When Californians go to the polls on November 5, Proposition 27 will not be on the ballot. However, an appetite for another referendum that would make it legal in the state to wager on sports via California betting apps is still fervent in some circles
The Proposition 27 referendum was on the ballot two years ago during the midterm elections and it was resoundingly defeated. The results saw 82.18% – some 4.5 million people – vote against it, while just 17.72% cast their ballots in favor of Proposition 27. That resulted in one of the largest defeats ever for any proposition in US election history.
Still, it appears that there remains a groundswell of support to keep pushing forward on the issue. Native groups who are operators of the state’s tribal casinos are working together to come up with a new plan to get legal and regulated online sports betting in place in California. But based on the public response to the last attempt, it would appear that they’ve got plenty of work ahead of them.
Two Proposals Failed in 2022
Had Proposition 27 succeeded, it would have allowed for private sports betting sites to partner with one of California’s tribes to offer online and mobile sports betting. By downloading one of the sports betting apps, players could bet on sports from home, or from wherever they were located during the events of their day.
A second initiative, Proposition 26, was also on the state election ballot in November of 2022. This proposal would have permitted tribal casinos, as well as California racetracks such as Santa Anita, Del Mar and Los Alamitos, to offer retail sports betting. No online or mobile sports betting was part of this proposal.
Proposition 26 also was soundly defeated. There were 68.49% of voters who rejected the proposal. Only 31.51% voted in favor of Proposition 26.
Some major cash was backing both of these proposals for passage. Proposition 26 supporters raised $132.3 million. Meanwhile, $169.1 million was contributed in support of Proposition 27. However, it should be noted that those opposed to the passage of Proposition 27 raised $249.4 million.
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Why California Is Such A Coveted Market
It’s easy to see why there’s such massive interest in widespread legalization of regulated sports betting in California. With a population of nearly 40 million, it is the most densely-populated of the 50 US states.
California is also densely populated in terms of professional sports franchises. The state is home to 21 major pro franchises, the most of any US state.
There are five teams in MLB – the Los Angeles Dodgers, Los Angeles Angels, San Diego Padres, San Francisco Giants and Oakland Athletics. The four NBA teams in California are the Golden State Warriors, Los Angeles Clippers, Los Angeles Lakers, and Sacramento Kings. There are also three NHL teams, with the San Jose Sharks, Los Angeles Kings and Anaheim Ducks. As for the NFL, they also number three – the San Francisco 49ers, Los Angeles Rams, Los Angeles Chargers
In the MLS, there are three teams from California, including the LA Galaxy, Los Angeles FC, and the San Jose Earthquakes. As well, San Diego FC will join the league as an expansion franchise in 2025. The Los Angeles Sparks play in the WNBA and Angel City FC are in the NWSL.
Beyond that there are no less than 50 minor pro sports franchises operating in the Golden State. Then there are also prominent university sports teams such as the USC Trojans, UCLA Bruins and California Bears.
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Tribal Leaders, Sports Betting Sites Seeking Common Ground
Polar opposites in the sports betting proposition battles in 2022, leaders of California’s tribal groups, who control the land-based casino industry in the state, are holding firm on their stance regarding online and mobile sports betting. They think that the gambling compact between the state and the tribes requires that any further extension of legal gambling in the state must be done in conjunction with their facilities.
During an April meeting at the annual Indian Gaming Tradeshow & Convention in Anaheim, tribal leaders and operators of the major US online sportsbooks appeared to be seeking to find common ground in order to work together in the future. Tribal leaders believe the sovereignty of the tribes was not respected by past attempts to legalize sports betting. “We have an obligation to our tribal membership to provide resources and opportunities, to protect our membership,” said Paskenta tribe Chairman Andrew Alejandro.
The leaders of the US sports betting industry seem to be coming to the realization that working with the tribes is the route they must go for the future success of this endeavor.
“We just want to prove that we can be good long-term partners for tribes,” Frank Sizemore, vice-president of strategic partnership for FanDuel, said while speaking at the SBC Summit North America in May of 2024. In a sense, Sizemore has switched teams on this contentious issue. As a lobbyist who worked for the San Manuel Band of Mission Indians, he fought against the legalization of online and mobile sports betting in California in the leadup to the 2022 election.
“I’m trying to repair our reputation in California,” Sizemore said. “Everybody probably knows the background.”
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What’s The Next Step?
Since there’s no new proposal slated to be part of the 2024 California election ballot, that leaves 2026 as the earliest hope for another chance to gain enough votes to push through legalization of sports betting in the state.
However, experts in the field believe that there’s still much groundwork to be laid regarding this issue, and fences to be mended between the tribes and the sportsbook operators.
It seems more likely that 2028 will be the earliest that another referendum on sports betting can be put in front of the public in California.
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