BREAKING: AP projects Californians have voted to reject Proposition 27, the measure legalizing mobile and online sports betting.
The measure would have allowed licensed tribes and gaming companies to offer these services to anyone 21 or older. In contrast to Proposition 26, which would restrict sports betting to tribal casinos or select race tracks, this measure allows users to place bets from anywhere outside of Native American Tribal lands.
California currently has compacts with 79 tribes, regulating gambling within the state. Since tribal lands are sovereign nations, the indigenous leaders who chose to offer sports betting would have negotiated the limits with the governor before memorializing it into the tribe's compact with the state.
Prop 27 will tax tribes and companies with licenses, requiring them to pay 10% of sports bets made each month, after subtracting for expenses. The state legislative analyst outlined these expenses as any bets made with credit from promotional officers, prize payments and federal gambling taxes. Additionally, tribes and companies must pay a portion of these monthly payments before getting their license approved or renewed.
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