Fact checking ads for California’s sports betting propositions
Odds are, one of the many ads for legalizing sports betting has snagged your attention, given their ubiquity on TV, websites and billboards across California.
You’d be forgiven, though, for still not having a clear sense of what either of the initiatives do. Some of the ads don’t mention sports betting at all, potentially leaving Californians foggy on what exactly it is they’re being asked to decide.
The ads are “oversimplified to a point of not being fully accurate,” said Mary Beth Moylan, an associate dean and professor at the McGeorge School of Law at University of the Pacific who oversees a journal dedicated to California’s initiatives.
Proposition 26 would legalize sports betting at tribal casinos and at California’s four private horse race tracks. It is being paid for by about a dozen Native American tribes. It would also allow tribes to begin offering roulette and dice games.
Proposition 27 would legalize online sports betting across the state and is being paid for by a handful of large gaming companies. Under Proposition 27, both gaming companies and tribes could offer online and mobile sports betting.
But how truthful are the ads? Here’s what you need to know about some of the often-repeated claims.
Claim: “Tribal leaders support the Solutions Act (Prop 27)”
Leaders from three of California’s 110 federally recognized Native American tribes — Santa Rosa Rancheria Tachi Yokut Tribe, Middletown Rancheria of Pomo Indians and Big Valley Band of Pomo Indians — support the online sports betting proposition.
Chairman Jose “Moke” Simon III of the Middletown Racheria of Pomo Indians said in an interview with CalMatters that he supports Proposition 27 because it gives the tribe an opportunity to bring in more funds. The tribe is rural and has a casino about an hour’s drive north of Napa.
“Our brick and mortar (casino) is limited by just our area where we’re located and the mobile sports betting would allow us to reach a much broader audience,” said Simon III.
But, over 50 tribes and tribal organizations oppose Proposition 27. They say it would disrupt the gaming that has been operating on tribal lands for decades and would drive business away from Indian casinos.
True?
It is true that a few tribal leaders support Proposition 27, but far more tribal leaders oppose the measure.
Claim: Proposition 27 “supports every California tribe, including financially disadvantaged tribes that don’t own big casinos”
It’s true that every tribe would see some kind of benefit from Proposition 27. Tribes that have compacts with the state of California that allow them to offer gambling could create their own mobile sports betting app or website. Or, they could partner with a gaming company that wants to offer online sports betting in California.
The initiative also taxes online sports betting and sets aside 15% of the money for tribes that aren’t involved in sports betting. But, because it’s hard to know exactly how many people will place bets, how many companies and tribes will want to offer sports betting, or how many tax deductions companies will take, it’s impossible to know exactly how much money that will be.
True?
Every tribe has the potential to benefit from Proposition 27, yes. It’s unclear to what degree each tribe would benefit.
Claim: Proposition 27 provides “hundreds of millions in yearly funding to finally address homelessness in California”
This one is a bit complicated. It’s possible the proposition will generate hundreds of millions of dollars annually to address homelessness, but it’s not guaranteed.
Each election cycle, the non-partisan Legislative Analyst’s Office reviews each proposition and estimates the new costs and revenue each could create for the state. They found that Proposition 27, via taxes and fees, would increase money flowing to the state by “possibly in the hundreds of millions of dollars but likely not more than $500 million annually.” The office didn’t include a lower-end estimate.
First, that money would be used to cover new costs related to regulating sports betting, which the analysts estimate could reach tens of millions of dollars annually.
Out of the money that remains, 15% would go to tribes that don’t participate in sports betting and 85% would go to homelessness solutions. The Legislature could also choose to direct some of it to gambling addiction treatments.
True?
It is possible that Proposition 27 would wind up generating hundreds of millions of dollars per year for the state to address homlessness. But if taxes and fees end up bringing in $100 or $200 million a year — as opposed to $500 million — then it would not. Also, if the Legislature decides to direct a large portion to gambling addiction treatments, that would reduce the amount that goes to homelessness solutions.
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