CASC opposed to legalizing online sports betting in California

The California State Association of Counties (CASC) on Friday made public its objection to Proposition 27, which is a move to change the state’s constitution in order to legalize online betting. The bill is slated for a ballot in November.

There are seven national sports betting organizations participating in Prop 27. Their proposal would allow national operators to obtain a license for online sports betting for a fee of $100 million, while the state would impose a tax of 10 percent on the earnings generated by gaming. According to the proposal, 85 percent of the tax revenue that is generated would be used to fund projects that fight homelessness and support mental-health initiatives.

“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 Graham Knaus, the Association’s Executive Director.

“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.”

READ: BP’s guide to sports betting in California

CASC is the most recent association to take a stance against Prop 27. It joins groups like the California League of Cities, as well as sections of the Democratic and Republican parties of the state, renowned teachers’ unions, senior legislative leaders, and a large number of commercial, labor, civic, and social service groups.

The California Legislative Analyst’s Office conducted a study and envisioned that the proposition, if it were to be approved, would generate up to $500 million in revenue.

The ‘Coalition for Safe, Responsible Gaming’ contends that 90 percent of the income that would be generated by the sportsbooks would likely be taken out of the state.

The November 8 ballot also includes Proposition 26, which, if passed, would make it legal for state-licensed racetracks and tribal casinos to operate retail sportsbooks. In addition, tribal casinos would be permitted to offer games like roulette and dice-based table games if Proposition 26 succeeds.

As a result of having two sports betting proposals appear on the same ballot in the most populous state in the country, there has been a fierce battle between the various parties as they strive to get their points across to voters.

More than $394 million has been collected across all of the organizations up until the beginning of this month. More than $157 million has been contributed to the ‘Californians for Solutions to Homelessness and Mental Health Support’ committee, which is advocating for Proposition 27. This committee is sponsored by DraftKings, Bally Bet, Barstool Sportsbook, WynnBET, BetMGM, Fanatics, and FanDuel.

According to a survey from the Cal-Access database maintained by the California Secretary of State, the committee received an additional $6 million donation from FanDuel and $999,945 from DraftKings just in the past week.

Ten different tribal nations have contributed a total of $104.2 million to the Coalition for Safe, Responsible Gaming, which is a group that is both in favor of Proposition 26 and opposed to Proposition 27. The majority of this cash has been contributed by the Agua Caliente Band of Cahuilla Indians ($10.1m), the Federated Indians of Graton Rancheria ($35.2m), the Yocha Dehe Wintun Nation ($20.2m), and the Pechanga Band of Indians ($25.3m).

Another tribally headed organization that is against Proposition 27 is ‘Californians for Tribal Sovereignty’. It has raised $91.2 million, with the San Manuel Band of Mission Indians contributing $78.1 million.

‘Taxpayers Against Special Interest Monopolies’, an organization opposed to Proposition 26 that is funded by cardroom casinos, is the other group that is participating in the issue. This organization has been successful in raising $41.9 million.

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