Live Gambling on the Ballot in California

Sometimes the biggest bets don’t involve dice, cards, or RNGs.

Such is the case with Proposition 26 and Proposition 27, which are currently on the ballot in California!

No gambler has laid a bet, no one’s bankroll has been boosted or drained… and yet, incredible amounts of money stand to change hands this week in The Golden State. And it all comes down to the voters.

Amidst all the news of growth in the industry, as well as the fruitful collaborations constantly emerging from top brands, it can be easy to forget that massive slices of the market and gambling public are just one election away from legalization.

We’re talking about a truly massive market here. If California were a country, its GDP of $3.35T would place it as the 5th largest economy in the world… ahead of India and the United Kingdom!

Just think of the implications for the industry if gambling were to become legal and regulated in a market like this! It would instantly transform and expand the sector on a massive scale.

Maybe that’s why so many actors are so deeply invested in the outcome.

Tremendous amounts of money have been spent on lobbying and advertising, by Tribal interests, would-be providers, anti-gambling organizations, major parties, and more.

Complicating matters is that there are not one but two potential laws for voters to consider. Let’s take a closer look!

On the face of it, these ballot iniatives are just about as simple as can be.

Proposition 26 would legalize sportsbetting at Tribal Casinos as well as licensed racetracks. Proposition 27 would legalize online and mobile sportsbetting wholesale, for both tribal and private providers. (Additionally, it would impose a 10% tax on all sportsbook revenues and licensing fees, to be devoted towards supporting unhoused people.)

Separately, these are just about as straightforward as anyone could wish. When both appear on the same ballot, things get a bit confusing…

… and not just for voters!

Consider the perspective of Tribal casino administration. Should Prop 26 pass and Prop 27 fail, they’ll find themselves suddenly able to serve millions upon millions of new guests, with incredible amounts of potential new revenue coming their way. Most casino admins would consider this a very positive situation.

But what happens if both Propositions succeed? The market will instantly be expanded in a big way…

… but Tribal interests will have to compete against gigantic, global corporations for their share! Is this an improvement for their business model, or a step in the wrong direction? If both propositions fail, what happens to the betting community in the great state of California?

And of course, if only Prop 27 passes, that would spell financial ruin for Tribal casinos!

Conflicting ballot iniatives like these raise all kinds of tough questions. What’s a fan of casino gambling to do?

Politics make strange bedfollows, it’s said.

That’s definitely the case here!

It seems that there’s been a soap opera-like shifting of alliances throughout the campaign. As might be expected, there’s been a massive influx of money from the likes of FanDuel, DraftKings, BetMGM, Bally’s, and other multinational interests, trying to encourage voters to support Prop 27 and vote against Prop 26.

For their part, Tribal interests have been encouraging voters to vote no on both propositions.

Their position is that these two iniatives are conflicting and confusing, and voters should have the luxury of straightforward choices when it comes to legalization.

Of course, that leaves unstated the obvious fact that under the status quo – that is, if both propositions fail – Tribal providers will be able to continue to operate at or around their current profit margins. The massive companies trying to lobby their way into the California market will be out in the cold… and all their advertising money will have been wasted.

As of the most recent polls, it seems that both propositions are likely to fail. That means California gamblers will have to wait at least one more year before legalization and regulation become the law of the land.

Still, there’s a lot to be encouraged by for fans of sportsbook wagers in the Golden State. The mere fact of these propositions advancing so far harkens very well for the future… such a thing would have been unimaginable just a generation ago.

Now, it seems like it’s just a matter of time.

Fans of poker know that one-of-a-kind feeling: all bets have been placed, one or more player(s) is all-in, and the only thing left is to wait for the cards to fall. First the Turn, then the River.

In some ways, that’s exactly where the CA gambling community finds itself with the election less than a week away!

It doesn’t matter if you’re a bettor, a dealer, an industry professional, or involved with one of the interests standing to gain (or lose) millions of dollars in business with this election…

… the die has been cast. Donations have been made. Alliances formed. Ads placed. There’s only one step left in the process: the people have to make their choice.

We don’t know about you, but we’re excited to see what results come in! There’s a decent chance that the entire complextion of online betting in the USA is about to change.