California: Gov. Newsom opposes sportsbook-backed Proposition 27

California Gov. Gavin Newsom is opposing Proposition 27, one of two competing proposals to legalize sports betting in the state. Newsom has now weighed in, publicly voicing his opposition to the sportsbook-backed ballot measure, which would legalize online sports wagering apps in the Golden State.

“Proposition 27 is bad for California," Newsom said in a statement this week. "It would hurt California's Indian Tribes, increase the risks of underage gambling, and push billions of dollars out of California and into the pockets of out-of-state corporations. Vote No on 27.”

Proposition 27 is up against Proposition 26, a tribal-backed measure that would permit retail sports wagering at reservation casinos and horse racing tracks. Newsom’s remarks add trouble to Prop 27, which already faces backlash from several parties and, according to polls, is almost certain to lose in November’s ballot.

According to the Public Policy Institute of California’s latest results, Proposition 27 is at only 26% support. Tribal-backed Prop 26 doesn’t look that good either, at 34% support. The findings are based on Oct. 14-23 responses from 1,715 adult California residents. According to the poll, 48% of likely CA voters say legalizing sports betting would be a bad thing.

Newsom’s stance echoes the arguments leveraged by the tribes and has been read as the California Gov. seeking to gain their favor. Supporters of Prop 26 were quick to react to Newsom’s remarks, among them the San Manuel Band of Mission Indians, which praised his move in a statement.

“California Tribes are grateful for Governor Newsom’s opposition to Prop. 27. We thank him for standing with us to protect our sovereignty,” said Said San Manuel chairwoman Lynn Valbuena. “Tribal gaming in California is beneficial for Tribes and for all of California. Prop. 27 would allow out of state corporations to interrupt that mutually beneficial relationship.”

Prop 27 would allow online sports betting, including apps, and is supported by giants like FanDuel, DraftKings and BetMGM, which have spent millions to get the prop passed and in advertising. Similarly, tribes and their allies have also spent millionaire sums of money to get it rejected as well.

California is seen as one of the largest untapped sports betting markets in the US, attractive for sports betting companies that saw the massive success of the gaming vertical in New York this year. A defeat of Prop 27 would keep the status quo and prevent these gambling giants from entering the Golden State.