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Record Spending on California Legal Gambling Initiatives

A campaign that could bring legalized sports betting to California is the most expensive ballot initiative in U.S. history at nearly $400 million, pitting wealthy Native American tribes against online gambling companies and less wealthy tribes. combined, is expected to reach billions of dollars. dollar market.

A torrent of advertising has plagued Californians for months.Many of them promise far more than hefty returns from gaming bets. Consortium of gambling companies It barely mentions online betting.

Instead, the ad alludes to the abundant profits to be made from the new revenue, such as helping the homeless, helping the mentally ill, and providing financial security to poor tribes who haven’t seen the windfall from casino gambling. . To further cloud the matter: the poll has two sports betting questions.

Skeptics include Democratic Gov. Gavin Newsom, who has not taken a position on either proposal, but said Proposition 27 “is not a homeless initiative,” despite claims in the ad. ing.

Jack Pitney, a political scientist at Claremont McKenna College, said promises of “no good” have been used in the past to sell state lottery tickets as an endless source of funding for education. said. It’s political salesmanship and “not a panacea,” he said.

The stakes are high, with over $400 million raised to date. This is a national record for fighting for voting initiatives, nearly doubling. California’s previous mark set in 2020 — There are seven weeks left until voting closes on November 8th.

“Billions are at stake, so they’re spending hundreds of millions of dollars,” said Steven Maviglio, a longtime Democratic consultant. Mentioned potential future profits from gambling.

“Both sides stand to be really rich in the long run,” said Maviglio, who was not involved in the campaign. can be the source.

It can all be a bad bet.

With the midterm elections approaching, voters are in a bad mood And cynical about political pitches. And with two similar proposals of his on the ballot, history suggests that voters are confused and tend to pull the “no” lever on both proposals.

“When in doubt, people vote against it,” Pitney said.

California allows gambling at horse races, Indian casinos, card rooms and state lotteries. However, the state lags behind in sports betting. what has spread all over the country.

These two proposals pave the way for sports betting, but in very different ways.

Proposition 27 is backed by DraftKings, BetMGM, FanDuel (the latter being The Associated Press’ official odds provider), and other domestic sports betting operators. This proposal would change state law to allow online sports betting for adults over the internet, phone and other mobile devices.

Multi-state operators must be affiliated with tribes involved in gambling. Alternatively, licensed tribes can enter on their own. However, the tribes argue that they must give up some of their independence in order to enter into an agreement. Assign to tribes not involved in

A rival proposal backed by many tribes, Proposition 26 would allow people to bet directly on sporting events at tribe-operated casinos and the state’s four licensed racetracks. A portion of the 10% tax will help enforce gambling laws and pay for programs that help people with gambling addiction. It could also pave the way for roulette and dice games at Tribal Casino.

A few political committees are at the center of the battle, dueling for funding and public support.

A 26-for, 27-against committee sponsored by more than 20 Indian tribes has raised about $108 million so far this month, according to state records. Among the major donors are the Commonwealth Indians of Graton Rancheria ($30 million), the Pechanga Band of Indians ($25 million) and the Yocha Dehe Wintun Nation ($20 million). All are enriched by their own casinos.

Another committee trying to void Proposition 27, supported by tribes including the San Manuel Band of Mission Indians, has raised about $91 million.

Their main rival, the 27-committee Yes backed by sports betting companies, generated about $169 million in loans and donations.

Backed by The Card Club, the committee against Proposition 26 has racked up more than $41 million for this fight. The proposal includes an enforcement change that the club deems an attempt to give the tribe a virtual monopoly at all games in the state.

Despite lofty claims about the state’s new revenues, it’s not clear what financial benefits would result from either proposal.

By Proposition 27, The bipartisan Office of Legislative Analysts concluded The impact on revenues and costs is uncertain. One reason for this is that we do not know how many entities offer bets or how many people place bets. It can bring in hundreds of millions of dollars each year.

But offices also allow people to change their spending habits, such as sports betting instead of buying lottery tickets or shopping at malls, so some of their income isn’t new dollars. I concluded.

State analysts also found that the fiscal implications of competing Proposition 26 are unclear. One reason for this is that we do not know how state and tribal agreements will change to allow sports betting.they found This proposal could increase state revenue, Enforcement and regulatory costs also increase, perhaps by tens of millions of dollars each year.

The confusion of political support is mixed. California Republicans oppose both proposals. State Democrats oppose Proposition 27, but are neutral on Proposition 26. Major League Baseball supports Proposition 27.

Voters are witnessing a deluge of competing claims.

The No on 26 Committee sees wealthy tribes manipulating the system to gain unprecedented gambling income and political influence.

No on 27 Commission spokesman Rob Stutzman warned that up to 90% of profits from the proposal could go to gambling companies, saying, “A bill opposed by both Democrats and Republicans is bad. It’s news,” he warned.

https://www.ksby.com/news/california-news/record-spending-over-californias-legal-gambling-initiative Record Spending on California Legal Gambling Initiatives

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