Voters in California have voted to reject two competing ballot measures that would have opened up sports betting, a major defeat for the industry.
Propositions 26 and 27 were the costliest ballot measures in state history, pitting Native American tribes and massive gambling companies against each other. While both measures would have legalized some form of sports betting, they differed greatly in scope and in the fine print.
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Proposition 26 envisioned in-person sports wagers at horse racing tracks and in casinos on tribal land. Proposition 27 allowed California residents to make bets through approved sportsbooks online anywhere in the state — a much more expansive proposal.
There was a web of campaigns involved in the ballot initiatives as well. One supported Proposition 26 while campaigning against Proposition 27, while another solely focused on defeating Proposition 27. A third worked entirely against Proposition 26. And a final one, backed by major sportsbooks, singularly campaigned in favor of Proposition 27, according to KTLA.
Most major Native American tribes in California supported Proposition 26 because it gave casinos on tribal land priority versus Proposition 27. The latter would take away the incentive for prospective sports gamblers to make the journey to casinos to bet in person.
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If Proposition 27 passed, California would have joined a growing wave of states that have given the green light to mobile and online sports betting. It would also have required major sportsbooks to partner with a California tribe and shell out $100 million to get licensed in the state.
In the lead-up to the election, both propositions polled poorly as the various campaigns lashed out against the competing ballot initiatives. Both proposals were expected to fail at the ballot box.
