On Friday, the executive director of the California State Association of Counties (CSAC), Graham Knaus, expressed the organization’s position on Proposition 27, declaring that the organization is opposed to the proposal, making the CSAC the latest body to come out against Proposition 27.
Knaus disclosed the organization’s views in a release in “Californians for Safe, Responsible Gaming,” a tribal-backed group that opposes Proposition 27 but supports Proposition 26, emphasizing that California’s counties are on the forefront lines of offering adequate safety net programs.
“California’s counties are on the front lines of the homelessness and mental health crisis, providing safety-net programs and services for unhoused residents,” said Knaus in a statement.
Knaus further said that after examining Proposition 27, the organization considers it a “bad deal.”
“We carefully reviewed Prop 27 and concluded it’s a bad deal for counties and for California. Make no mistake, Prop 27 is NOT a solution to homelessness,” Knaus concluded.
If passed, Proposition 27 will allow the state to impose a 10% tax on gaming income. Additionally, it will be possible for large national operators to pay $100 million for an online sports betting license. As a result, the initiative itself is supported by notable betting companies. In terms of social support, the proposal also specifies that 85% of the taxes collected will be used to fund initiatives to end homelessness and endorse mental health services.
Despite projections from the California Legislative Analyst’s Office that Proposition 27 would result in up to $500 million in revenue, the “Coalition for Safe, Responsible Gaming” claims that 90% of the earnings made by the sportsbooks will ultimately leave the state.
Measures pertaining to sports betting
Proposition 27 is one of the two proposals pertaining to sports betting on the November 8 ballot, along with Proposition 26. With regard to proposition 26, it is a measure that will enable tribal casinos to run retail sportsbooks alongside state-licensed racetracks and to add dice-based table games and roulette to their casinos.
The provision in Proposition 26 that will permit private entities to use the Private Attorney General Act (PAGA) to go straight to court and attempt to halt what they claim to be illegal gaming activities has also drawn some criticism. The California Republican Party, which opposes the bill due to PAGA concerns, as well as state-licensed cardroom casinos, have both voiced strong criticism of this portion of the measures.
Campaign over the measures
It is well known that the proponents of both propositions 26 and 27 had invested a significant amount of money in their campaigns to reach prospective voters.
FanDuel and DraftKings have just donated $6 million and $999,945 respectively to the pro-Prop 27 group “Californians for Solutions to Homelessness and Mental Health Support.” The funding is a supplement to the money already raised previously, which was more than $157 and came from WynnBET, Bally Bet, Barstool Sportsbook, FanDuel, BetMGM, DraftKings, and Fanatics.
The “Coalition for Safe, Responsible Gaming,” a group that supports proposition 26 and opposes proposition 27, has gathered an equally astounding $104.2 million from 10 tribal nations.
“Taxpayers Against Special Interest Monopolies,” a group opposed to Proposition 26, has already raised $41.9 million, while “Californians for Tribal Sovereignty,” another opposition to Proposition 27, has raised $91.2 million.