Prop 27, an industry-backed initiative to legalize online sports betting in CA through partnerships with tribal casinos, only won 16.7% of votes.
Operators spent about $170 million trying to convince voters to back Prop 27, but to no avail. With one month left to go, the industry is now reportedly canceling ad buys.
Survey by the Public Policy Institute of California (PPIC) suggests industry-backed initiative for California online sports betting is doomed, despite nearly $170 million spent to date in support.
CEO Tom Reeg says the company wants to avoid offending its tribal business partners, including two tribes in Cali where Caesars manages their properties.
Meanwhile, five sports betting operators spent $50 million in July to get the initiative passed.
After meeting with Rush Street Interactive execs, analysts with JMP Securities noted that a $100 million license fee in CA “might not garner the return necessary to justify operating in the state.”
BetMGM, DraftKings, & FanDuel have been leading the effort to win votes for a proposal to have online & retail sports betting tethered to the state’s numerous tribal casinos.
| Featured US Casinos | ||
|---|---|---|
| BetMGM | Up to 1,000 Bonus Spins | Visit » |
| DraftKings Casino | Exclusive Casino Games | Visit » |
| Golden Nugget Casino | 1,500+ Casino Games | Visit » |
| BetRivers | $500 Play It Again | Visit » |