Proposition 26: Legalize sports betting on American Indian Lands Initiative

While California law currently allows some gambling such as state lotteries and tribal casinos that generate billions in tax revenue annually, sports betting is illegal.

Proposition 26 would allow in-person sports betting at tribal casinos and certain horse racetracks. Tribal casinos and racetracks that opt to offer sports betting would have to pay California. The money would pay for education, the costs of regulating sports betting, and  gambling addiction programs, according to the LAO.

Additionally, the proposition allows tribes to offer roulette and dice games and allows people to file a civil lawsuit against anyone they believe is breaking state gambling laws.

Supporters say that Proposition 26 allows tribes to be more self-reliant and creates valuable state revenue on sports betting, which already happens illegally. 

But the LAO says the actual fiscal effects of Proposition 26 are unclear. The amount of revenue created depends on how many people participate in sports betting and if people spend less on other things like lottery games that the state currently makes money on to make sports bets. 

Furthermore, increased regulatory and enforcement costs in the tens of millions of dollars may offset much of the financial benefits of the proposition.

Opponents argue that the civil lawsuit addition in Proposition 26 would allow tribal casinos to sue their competitor card rooms and drive them out of business, resulting in negative effects on the economy, according to CalMatters.

They also caution that the proposition will increase underage gambling since the minimum gambling age is as low as 18 in certain tribal casinos.

Proponents include 27 tribes and tribal organizations, while opponents include private cardrooms and the California Republican party.