California Sports Betting Propositions

Back in 2022, California was seriously considering the possibility of legalizing sports betting. If it had done so, it would have instantly become the largest state with legal sports betting, and CA would have become a major player nationally when it came to the future of betting on sports in the US.

Two propositions, Prop 26 and Prop 27, made it onto that year’s November ballot, but both failed to pass by wide margins. Almost 67% of voters said “No” to Prop 26, and over 82% said “No” to Prop 27. In fact, the colossal defeat of both propositions has considerably slowed the momentum in CA to legalize sports betting.

For historical purposes, below we are sharing an overview of what those bills proposed. Meanwhile, PlayCA continues to keep watch on any new legislation that might one day bring sports betting to the Golden State.  

About Prop 26 and Prop 27

Sports betting in California is currently illegal. Unfortunately, the country’s most populous state is still several steps away from legalizing the sports betting industry. Two propositions legalizing sports betting in the Golden State, Propositions 26 and 27, both failed at the ballot box in November 2022. 

While the two propositions would have legalized and regulated California sports betting, they would have done so in very different ways.

Prop 26 would have eallodw in-person sports betting at California tribal casinos and horse racing venues. Introduced and backed by many of the state’s Native American tribes, Prop 26 would have also allowed the addition of dice and roulette games to tribal gambling properties. In addition, while Prop 26 would have permitted sports betting, it had a ban on wagering on California’s college sports teams, such as UCLA and USC.

 

 

Questions about Prop 26 and Prop 27

What was California Prop 26?

Prop 26 would have allowed in-person sports betting at California tribal casinos and California horse racing venues. It would also would have banned wagering on in-state college sports teams.

Prop 26 was about more than just sports betting, though. It would have also allowed tribes to spread dice and roulette games at their casinos, and would have cleared the way for tribes to sue cardroom operators under the Private Attorneys General Act.

What was California Prop 27?

Prop 27 would have allowed online sports betting throughout California. All online sportsbooks would have been required to partner with a federally recognized Indian tribe, and operators would have been charged an initial $100 million license fee, renewable every five years for $10 million.

The initiative taxed operators at a 10% rate. Furthermore, 85% of tax revenue would have gone to homelessness and mental health services in California. The other 15% would have gone to non-gaming tribes around the Golden State.

What would a yes vote on California Prop 26 have meant?

A yes vote on Prop 26 would have meant support for the positions of a majority of tribes in California. If Prop 26 had been passed, US sportsbooks would be allowed to open at tribal casinos and select California horse racing venues.

What did the no vote on California Prop 26 mean?

The no vote on Prop 26 meant allow tribes could not operate on-site sportsbooks. It also prohibited tribes from adding dice and roulette games to their casino floors and disallowed lawsuits from tribes against California cardrooms under the Private Attorneys General Act.

What would a yes vote on California Prop 27 have meant?

A yes vote on Prop 27 would have endorsed the prospects of legal online sports betting. If passed, Prop 27 would have allowed widespread retail operations within California’s boundaries but outside of tribal lands.

What did a no vote on California Prop 27 mean?

The no vote on Prop 27 was seen by many as a rejection of out-of-state corporations when it came to CA sports betting. It was also regarded by some as support for most California tribes, which opposed Prop 27 and currently control most of California’s legal gambling market.

Who supported California Prop 26?

Support of the tribal sports betting measure began with a coalition of 25 Native American tribes, led by:

• Pechanga Band of Luiseño Mission Indians
• Barona Band of Mission Indians
• Agua Caliente Band of Cahuilla Indians
• Yocha Dehe Wintun Nation

It also included social justice organizations such as the California/Hawaii branch of the NAACP, public safety groups such as the California District Attorneys Association and San Diego Police Officers Association, and many chambers of commerce in areas with tribal casinos.

Here’s a full list of organizations that came out supporting the tribal initiative.

Who supported California Prop 27?

The online sports betting initiative was backed by seven companies interested in operating California sports betting apps:

• DraftKings
• FanDuel
• BetMGM
• Bally’s Interactive
• Fanatics
• PENN Entertainment
• WynnBET

Other key supporters included:

• Big Valley Band of Pomo Indians
• Middletown Rancheria of Pomo Indians
• Santa Rosa Rancheria Tachi Yokut Tribe
• Sacramento Mayor Darrell Steinberg
• Fresno Mayor Jerry Dyer
• Oakland Mayor Libby Schaff
• Long Beach Mayor Robert Garcia
• Elise Buik, President and CEO, United Way of Greater Los Angeles
• California Black Chamber of Commerce
• More than a dozen homelessness and housing service organizations

Could both Prop 26 and Prop 27 have passed?

Yes, they could have. Prop 26 and Prop 27 were independent of one another, and both only needed a simple majority at the ballot box on Election Day to pass. The Prop 27 backers insisted their measure did not conflict with Prop 26 and could have coexisted with it. Of course, that didn’t turn out to be an issue. 

Now what?

Since neither prop passed, sports betting backers had to return to the drawing board. The significant defeat of Prop 26 and Prop 27 in 2022 effectively shut down the issue for a while, and while there were some arguments for legalizing sports betting in 2024, nothing made it onto that year’s ballot. That means Californians would want to introduce legal sports betting in CA necessarily remain in wait-and-see mode.