$360 Million Spent on Dueling California Sports Betting Props So Far

Written by :

C Costigan

Published on :

22 August, 2022

$360 Million Spent on Dueling California Sports Betting Props So Far

With a little more than two months until Election Day 2022, a pair of dueling voter referendums are on track to set a new spending record.

Props 26 and 27 are each seeking to have sports gambling legalized in California. More than $130 million has been spent already to make this happen.

Prop 26 would allow for in-person betting. It is supported by a majority of the tribes.

Prop 27 is being pushed by outside companies like DraftKings and FanDuel to allow mobile sports betting statewide.

The last big ballot push in the state - to treat Uber, Lyft and DoorDash drivers as employees - brought in a record $133 million.

At the current rate with plenty of time left, it is pretty clear that the sports wagering initiative will surpass the rideshare efforts.

In fact, since June 30, some $16.5 million is being brought in to the state on a weekly basis. That number will surely increase as we inch closer to November.

Sports betting is not a slam dunk however. With an endless bombardment of advertisements, voters could get turned off.

Prop 26

Supported by 50+ Native American Tribes, the tax rate would be 10% with sports betting only permitted in-person. The tax distribution would be as follows: 15% Problem Gambling Programs, 15% Gambling Policy Enforcement, and 70% California General Fund.

Some eight gambling firms oppose this referendum and have come up with their own.

Prop 27

This one is supported by the eight betting firms, DraftKings and FanDuel included.

It allows for mobile statewide sports betting and ignores the retail venues such as the tribal casinos.

The tax rate is 10% and this measure is being pushed as a way to help the homeless. 85% of the tax taken in would go towards Affordable Housing and another 15% towards the Tribes that don't participate in online sports betting.