Proposition 27 would amend the state constitution to allow gambling companies and native American tribes to offer online sports betting. The measure requires participating companies or tribes to make payments to the state to address homelessness and gambling addiction. The proposition creates a regulatory unit which would set license requirements, what type of betting would be allowed, and would investigate illegal activities. Finally, the measure institutes specific tactics to lower the rate of illegal online betting.  This measure was put on the ballot by petition signatures.

Fiscal Impact

Proposition 27 would impact both state and local government revenues and costs. The actual size of these effects, however, is uncertain and would depend on how the proposition is interpreted and implemented. For example, this proposition expands legal gambling. In response, it is unclear whether tribes will ask for changes to their tribal-state compacts (such as to reduce the amount paid to local governments) to reflect potential impacts on tribal casinos. The fiscal effects would also depend on how many licensed entities offer sports betting and the amount of expenses they subtract from the monthly amount owed to the state. Finally, the fiscal effects would depend on the number of people who choose to make sports bets.   

What your vote means

According to the California State Legislative Analyst’s office:

A YES vote on this measure means: Licensed tribes or gambling companies could offer online sports betting over the Internet and mobile devices to people 21 years of age and older on non-tribal lands in California. Those offering online sports betting would be required to pay the state a share of sports bets made. A new state unit would be created to regulate online sports betting. New ways to reduce illegal online sports betting would be available.

A NO vote on this measure means: Sports betting would continue to be illegal in California. No changes would be made to the way state gambling laws are enforced.