27 would allow online sports betting across the state, while Prop. Two different sports betting measures made it onto the ballot for the 2022 election. The massive expansion has also concerned advocates, who say that gambling addiction will increase, and that research into the long-term effects of legalizing sports betting has fallen short. Americans bet more than $57 billion on sports in 2021. In California, lawmakers tried to negotiate a deal on sports betting in 2020, but weren’t able to work it out in time to get a measure on the ballot.Įlsewhere it’s proven popular - and lucrative.

Supreme Court ruled that states could legalize sports betting in 2018, 35 states plus Washington D.C. But sports betting - besides horse racing - isn’t legal in California currently. Tribes have long had the exclusive right to offer certain forms of gambling in California, including slot machines and certain card games, such as 21 and baccarat. If there’s any money left over, it would go to the state’s discretionary fund, as well as to problem gaming and mental health research, and the enforcement of gaming rules. The revenue would first be spent on education spending commitments and regulatory costs. New tribal-state compacts might require tribes to pay more to local governments, for example, and it’s unclear how much money will result from the new private lawsuits.

It’s difficult to know the exact amount for a few reasons. State analysts say the proposition could generate as much as tens of millions annually for the state. Any penalty and settlement money that results would go to the state. The proposition also would have created a new way of enforcing some gaming laws, allowing anyone to bring a lawsuit if they believe the laws are being violated and the state Justice Department declines to act. It doesn’t tax tribes, which are sovereign nations, but it requires tribes to reimburse the state for the cost of regulating sports betting. It taxes sports bets placed at horse race tracks. The proposition would also have allowed tribal casinos to begin offering roulette and dice games, including craps. Age restrictions on sports betting at tribal casinos would need to be negotiated by California’s governor and each tribe, and written into each tribe’s compact with the state. At race tracks, sports betting could only be offered to people 21 or older. 26 would have allowed tribal casinos and the state’s four horse race tracks to offer in-person sports betting. Voters resoundingly rejected Proposition 26, with 67% against.

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