This November, California voters will see two sports betting propositions on their ballots. Both would change the state constitution. Proposition 27 regulates online sports betting, while Prop 26 permits in-person sports betting at tribal casinos.
Mental health programs
One of the most significant provisions of both proposals is that they would increase the amount of tax revenues the state gets from sports betting. The revenue would go to the state for gambling treatment, prevention, and enforcement. A portion of the monies would also be allocated for education and mental health programs.
The size of the increase could be anywhere from tens of millions to hundreds of millions of dollars per year. However, the extent of the effects depends on how the laws are implemented and how frequently civil enforcement occurs.
Online sports book
If the new laws are implemented, the state will receive a 15 percent penalty on any sports bets placed through an unlicensed online sports book. These penalties would be paid into the California Sports Betting Trust Fund (COSBTF) to help cover the costs of enforcing the new law.
If there are no new fees, the cost of sports betting could decrease. However, the increased revenue from legal sports betting would more than offset the additional cost.
Several tribes, including the American Indian Chamber of Commerce of California, have voiced support for Prop 26. Native American tribes have a long history of closely regulated gaming. They have a history of self-reliance, and they believe that allowing their member casinos to offer sports betting would promote this.