The initiative would direct the revenue to fund programs for homelessness and gambling addiction, with a smaller cut for tribes that are not involved in online sports betting, according to the Legislative Analyst’s Office. Tribes and gambling companies with sports betting licenses would pay 10% of their take from sports bets each month to the state, after subtracting some expenses and losses. Tribes could also offer sports betting platforms on their own for a $10-million entry fee. The companies, which control a large swath of the online sports betting market in the U.S., would be required to partner with a California tribe and pony up $100 million to get licensed in the state. Proposition 27 is funded by gambling corporations, including sports gaming companies DraftKings and FanDuel. A Berkeley IGS poll taken in February showed Californians were open to the idea of legal sports betting, but the presence of two competing initiatives often makes it more difficult for either to pass, DiCamillo said. Backers of the measures have inundated voters with ads and blown away previous state campaign spending records in the process, but they faced an uphill battle from the start.
