California voters may be wondering who is funding Prop 27 in California.
Anti-Prop 27 ads claim that “out-of-state corporations” are funding the California online sports betting initiative. While that’s true, there’s nothing negative about out-of-state corporations except their connotations. Most companies are outside of California and are accepted without a second thought.
In this case, the largest donors are companies like DraftKings and FanDuel. In September 2022 alone, DraftKings spent $9.1 million on Prop 27’s campaign. FanDuel spent $10 million. Since January 2022, sportsbook companies that include BetMGM, PENN Gaming, and Bally Bet have contributed over $169 million to the Prop 27 campaign.
Getting online sports betting in California would be a major win for sports betting companies. California is projected to be one of the largest sports betting markets in the US. With online sports betting, the market’s revenue potential would be maximized. Contributions toward Prop 27 are investments in a new lucrative market that private sports betting companies would control.
Who Is Behind Prop 27?
Seven sportsbook companies are driving funding for Prop 27:
|Penn Interactive Ventures||$25,000,000|
|WSI US LLC||$12,500,000|
DraftKings and FanDuel lead the other brands in contributions. BetMGM and Bally Bet were in the middle. However, that may be the last of the brands that voters recognize on sight. Penn Interactive Ventures (PENN Gaming) owns Barstool Sportsbook and theScore Bet. FBG Enterprises is probably better known to Californians as Fanatics. Finally, WSI US LLC is WynnBET.
If Prop 27 were to pass, these seven companies would be expected to apply for sports betting licenses as soon as possible. They’ve invested the most money into what could become their newest and largest online market. However, the number of licenses that California decides to award could limit or expand a legal online sports betting market beyond these brands.
How to Find the Funding Breakdown
If Californians want to keep up with the groups funding Prop 27, they can find this information on California’s Secretary of State’s website. The Yes on 27 contributions page shows the contributions that different groups have made to the Prop 27 campaign.
Californians will have to check both the General Information tab and the Late and $5,000+ Contributions Received tabs to find the full amount to date.
California voters can find funding data for other initiatives and campaigns on this site, too. So, it’s worth having in their phones before heading to the polls in November.
When Is the Prop 27 Vote?
Nov. 8. That’s the day of the midterm election in California and across the US.
Prop 27 will decide whether California will have online sports betting or not — and whether we’ll see companies like BetMGM California launch. Online sports betting will reach more Californians than retail sports betting, maximizing sports betting handle and tax revenue.
However, online sports betting is also accompanied by a rise in problem gambling. Most sports bettors will enjoy sports betting without developing gambling problems or gambling addiction. However, the ones that do will gamble their life savings — or their family’s — away without support.
If California properly funds problem gambling services, it can mitigate the social costs of expanded online gambling. California already has problem gambling programs and non-profits specializing in problem gambling treatment. California will have to expand these services, but that can be done with a portion of the tax revenue sports betting generates.
However Californians decide to vote, the future of California sports betting is up to them.