Newsom sides with the Indian tribes and launches opposition to Prop. 27


California Governor Gavin Newsom is taking sides in the costly battle for the California sports betting initiative two weeks from Election Day.

Proposition 26 and Proposition 27 are California’s competing sports betting initiatives in the November ballot.

Proposition 26 would legalize in-person betting at Indian casinos and state-regulated racetracks, while Proposition 27 would legalize online sports betting statewide.

On Wednesday, Newsom officially spoke out against Proposition 27, which is officially called the Legalize Sports Betting and Revenue for Homelessness Prevention initiative, and backed by some of the biggest players in the gambling industry. , including DraftKings, FanDuel, BetMGM and Penn National Gaming.

“Proposition 27 is bad for California,” Newsom said in a statement. “It would harm California Indian tribes, increase the risk of underage gambling, and push billions of dollars out of California and into the pockets of out-of-state corporations. Vote No on the 27th.

In addition to legalizing online sports betting through partnerships between gambling companies and Indian tribes, Proposition 27 would create the California Online Sports Betting Trust Fund which would send 85% of its revenue to California Solutions to Homelessness and Mental Health Support Account.

The state estimates the initiative would bring in nearly $500 million a year from sports betting taxes.

Newsom’s decision comes as the two initiatives face an uphill battle in the two weeks after Election Day.

Campaigns for both initiatives have raised more than $440 million, but the attack ads appear to hurt both metrics.

A recent poll by the UC Berkeley Institute of Governmental Studies and the Los Angeles Times found that 31% of likely voters support Proposition 26 and 27% of likely voters support Proposition 27.

The resolutions face an opposition rate of 42% and 53%, respectively, according to the poll.


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