California Proposition 27


Nick Vides

Proposition 27 allows Californians 21 and older to place bets on sports teams via mobile device or the internet.

Tony Moeckel, Editor

Proposition 27 allows Californians 21 and older to place bets on sports teams via mobile device or the internet. If this proposition passes, people anywhere in California, not just those on tribal lands, would be able to access apps like FanDuel or DraftKings to bet on everything from sporting events to awards shows. If the proposition passes, it will make California the 31st state to legalize sports gambling. 

Tribes and sports gambling companies with sports betting licenses would have to pay the state 10% of all sports bets made monthly on their apps. The catch is, however, that the 10% is calculated after the companies deduct their expenses. Those expenses include any bets made with promotional credits, prize payments and federal gambling taxes; therefore, the state will likely lose out on earning significant revenue.

The payments made to the state would go into the California Online Sports Betting Online Trust Fund, of which 85% would go toward local entities that support homeless and gambling addiction programs. The other 15% would go toward tribes who aren’t involved in sports gambling. 

According to the California General Election Voter Guide, the proposition would have a fiscal impact on both state and local government revenues and costs, but the amount is uncertain because it depends on how the proposition is interpreted and implemented. 

A “yes” vote on Proposition 27 would allow legal sports betting, while a  “no” vote would keep sports betting illegal. 

Proponents of Proposition 27 say it will provide millions of dollars in aid for solutions to homelessness, mental health and addiction in California.  

In total, 43 advocates have given more than $169 million to support the proposition. FanDuel and DraftKings are among those trying to get the proposition passed because they would profit heavily. FanDuel has donated more than $35 million; DraftKings is right behind them with more than $34 million.

Opponents of Proposition 27 say it greatly benefits the out-of-state corporations that run online and mobile gambling. They say those companies would end up with 90% of the profits and do little for the humanitarian programs the proposition says their profits are supposed to help. Opponents also say Proposition 27 encourages minors to gamble since there is no in-person age verification requirement. 

According to the California Official Voter Information Guide, supporters of Proposition 27 include the San Diego Regional Task Force on Homelessness, Middletown Rancheria of Pomo Indians of California, and the Local Initiatives Support Corporation.

Opponents to Proposition 27 include the Tribal Alliance of Sovereign Indian Nations, the Lone Band of Miwok Indians, and the Alpha Project for the Homeless.