Zona de Azar USA – California Interest Groups Prepare for Ballot Fights Around Sports Betting
USA.- June 6th 2022 www.zonadeazar.com Californians were inundated with campaign ads in 2020 as businesses, unions and other wealthy interests shelled out record-shattering sums on ballot measures. This campaign cycle is already shaping up to be another jaw-dropping display of spending.
Just three initiatives have officially qualified for the November ballot so far, while six more are awaiting confirmation that they’ve received enough signatures. In the meantime, groups have raised more than $300 million in preparation for bruising fights over the next five months. A battle over whether the state should legalize sports betting — and who should control the market — is leading the way with a mammoth $221 million in spending on two ballot proposals.
Voters will also have the chance to settle debates over whether minimum wage should be raised to $18, if a ban on flavored tobacco products should be overturned and whether businesses will be required to slash their use of plastic packaging, among others.
From the key players to the critical political context, here’s POLITICO’s guide for what you need to know in November.— Alexander Nieves
Sports betting on tribal lands
How we got here
More than half of all U.S. states have legalized sports betting since the Supreme Court overturned a federal ban in 2018, and Native American tribes are hoping California will be next. A coalition of tribes has spent more than $30 million to qualify a measure that would allow for in-person sports gambling at reservation casinos and horse racing tracks. This comes after years of negotiations in the Legislature which failed to produce a compromise between the groups that want to offer sports betting, including cardrooms and online sportsbooks.
Potential Impact
The measure would not only make tribal casinos and racetracks the home for sports betting in California, but also allow tribes to offer new games like roulette and craps. Tribes have long had exclusive rights to offer certain types of gambling, like slot machines, but state law prohibits roulette and dice games. The measure would also allow tribes to sue cardrooms, which they argue illegally offer games like blackjack.
For
$31M spent
Key players
Rincon Band of Luiseño Indians, Agua Caliente Band of Cahuilla Indians, Pechanga Band of Luiseño Indians
Against
$26M spent
Key players
California Commerce Club, Hawaiian Gardens Casino, The Bicycle Hotel and Casino
PENDING
Allow online sports betting
How we got here
Tribes aren’t the only group trying to grab a piece of California’s sports betting market this fall. A coalition of online sportsbooks, like FanDuel and Draftkings, along with Las Vegas casinos are bankrolling a measure that would allow Californians to place bets through their computers and mobile apps. The proposal would also create extremely high hurdles for entry into the online market, giving the companies near complete control.
Potential Impact
Gaming companies hoping to offer online sports betting would have to pay a $100 million fee and already be operating in 10 states, or be licensed in five states and running 12 casinos. Backers of the measure say that a $100 million licensing fee would pay for affordable housing for the homeless, mental health services and financial support for tribes. Opponents, however, say it would block smaller operations from breaking into the market.
For
$100M spent
Key players
BetMGM, FanDuel, DraftKings
Against
$66M spent
Key players
San Manuel Band of Mission Indians, Rincon Band of Luiseño Indians, Yocha Dehe Wintun Nation
Edited by: @MaiaDigital www.zonadeazar.com
