California

Gov. Gavin Newsom further dooms CA online sports betting Prop 27

Neil Roarty profile picture
Updated 1 month ago on

2 min read

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Proposition 27 CA CAlifornia
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California online sports betting has not looked likely for months now, but Gov. Gavin Newson has arguably put the nail in the coffin with polling also suggesting that both CA Proposition 26 and 27 will not pass.

Newsom said (via Politico) that “Proposition 27 is bad for California. It would hurt California’s Indian Tribes, increase the risks of underage gambling and push billions of dollars out of California and into the pockets of out-of-state corporations. Vote No on 27″.

Proposition 27 would allow sports betting online (through mobile apps) state-wide. It’s been backed by several large commercial operators, with BetMGM, FanDuel and DraftKings amongst the loudest, plus sports league MLB getting behind the proposition too. In the latest polling, 34% of people said they would vote yes on the Prop, which falls comfortably short of the required amount for it to be considered for legislation.

The large operators seem to have also given up, withdrawing advertising funding as the battle for online sports wagering in CA beat records for marketing spend on any ballot Proposition. Between both sides, close to half a billion US Dollars has been spent on marketing campaigns.

The vehement opponents of the Proposition (Newsom now included) are most prominently a significant coalition of Native American tribes who currently enjoy the only legalized retail gaming in the state.

When is likely for CA online sports betting?

Operators will not be giving up on Proposition 27 though, and have already claimed that 2024 may be more likely.

Legal sports operators will be hoping that case studies such as a tax success story in the state of New York will help show the local governance and population that legalized sports betting can provide a true benefit across the state.

The California online sports betting market is touted by analysts as to potentially be the biggest of any state should it be legalized, given the vast population and demographic.

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Neil Roarty is a gambling industry veteran with over 15 years experience writing and editing in both Europe and North America. He is a regular speaker at gambling conferences and appears as an author in many industry publications.

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