The amount of money that is allocated for two propositions in the California general election has reached $350 million, according to reports. According to the Los Angeles Times, the number could rise up to half a billion by the time of election day this November. California is the most populous state in the U.S. With a huge amount of people living there, it offers a major California sports betting market with big potential. Experts have predicted that the market would be worth about $3 billion.
The number has overtaken the previous record of $224 million in 2020 when two ride-sharing companies, Lyft and Uber, were attempting to make changes to the state’s labor law. The two in-talks propositions are regarding the legalization of sports betting in the state which is divided into Proposition 26 and 27.
The opposing groups have spent a lot to secure the vote and in this year’s general election, the amount of spending would be predictably summed up. Proposition 26 is backed by local tribes-owned casinos and some politicians who are into legal retail sports betting at horse race tracks. Numerous casinos have pledged $92 million to support the proposition, and other $66 million to oppose Proposition 27.
On the other hand, Proposition 27 is backed by big corporations and gambling houses such as DraftKings, BetMGM, and FanDuel. They have reportedly spent $150 million to support Proposition 27.
DraftKings and FanDuel are the two biggest spenders in terms of sports betting in California. These big gambling houses are trying to convince people that online sports betting would be beneficial for the state’s tax revenue and solve their homeless issue.
The politicians say no
The Democratic and Republican leaders have announced their disapproval of Proposition 27. Saying that it would not bring any good to any parties.
“I am concerned that Prop. 27 sends sports betting revenues to out-of-state corporations who wrote the measure to maximize their profits,” Democratic Assembly Speaker Anthony Rendon said in a statement. “Californians should vote No on 27 and support California tribes over out-of-state corporations.”
Meanwhile, Senate Republican Leader Scott Wilk, R-Santa Clarita said that Proposition 27 would damage the integrity of California’s local tribes that have been running the business in the state.
“They have proven to be excellent stewards of this responsibility,” Wilk said. “We should protect this tribal right, which has also benefited all Californians. Vote No on 27.”
Online betting has been a serious issue across the country. Georgia’s gubernatorial candidate Stacey Abraham has proposed a plan to legalize online sports betting for the sake of states’ revenue. The 48-year-old politician thinks that casino gambling and sports could help to raise funds for a financial program.
“This will serve as a permanent source of revenue to underwrite broader access to education,” Abrams said. “Studies projected the potential for billions to exist in economic impact funds that will not only finance our efforts to replenish and expand the Hope Scholarship, but it will also provide new economic opportunities for Georgia that can grow jobs and make our economy stronger for everyone.”
For Georgia, this is not the first attempt to legalize sports betting. In 2021 and 2022, the state legislators pushed this into the parliament but then it was shut down even before securing the required votes.