What Do Nevada-Based Organizations Think about CA Sports Betting?

I'm curious if LVA, or the Nevada Gaming Commission, for that matter, has an opinion(s) about Proposition 26 and Proposition 27, the sports betting questions in California. I haven't noticed any Nevada-based organizations listed in the for or against ads, which run every two minutes here in the Golden State.

[Editor's Note: This question is answered by our own David McKee. His personal opinions herein might or might not be shared by management.]

Regulators in Nevada make a point of not having opinions on political issues and the more than $400 million sports betting campaign in California is one of the hottest political potatoes out there.

Supporters of Proposition 27, which would enable online wagering to a limited number of licensees at a high entrance fee, include usual suspects DraftKings and FanDuel (a business partner of Boyd Gaming), as well as Vegas-based BetMGM.

Few gaming companies headquartered in Nevada have a major online presence but MGM is one of those few. So is Caesars Entertainment, but CZR's CEO, Tom Reeg, is taking a firm position of neutrality on Propositions 26 and 27. Caesars may practice online wagering through its eponymous sports book, but it also manages a major Golden State tribal casino, Harrah’s Southern California, so it doesn’t want to make any Native American enemies. Of course, should either proposition win on Nov. 8, Caesars is sure to have a spot on the ensuing dance card, so Reeg’s neutrality is a win-win situation.

Financial backing for Proposition 26 is almost strictly tribal. That’s not surprising, as indigenous casinos (and horse tracks) stand to benefit. Especially the casinos, as Proposition 26 would also permit them to offer craps and roulette, improving their competitive position against Nevada. They would also be empowered to sue California’s myriad card rooms, which have been infringing upon tribal sovereignty by offering blackjack, much to tribal chagrin. Since numerous California municipalities are propped up by card-room taxes, they look upon Proposition 26 with fear and loathing.

What does the Las Vegas Advisor's Stiffs & Georges' blogger think? Well, not much.

Proposition 27 is structured to favor a bunch of carpetbaggers and create an expensive barrier to entry for the tribes. It's also disingenuously marketed as an initiative to underwrite homelessness prevention. California voters appear not to have been fooled by that mouthwash.

Proposition 26 has problems of its own. The insuperable one is that wagering would be walk-up only, offered only at parimutuels and on reservations, creating a serious inconvenience factor. Also, the larger tribes stand to participate (and benefit), leading to some resistance among smaller bands.

Most of the record-setting $400 million ad buy has been negative in orientation and, as you observe, so inescapable that it has induced a gag reflex in the electorate whenever sports betting is mentioned. As a consequence, voters are mostly expected to reject both propositions come Election Day, though the most recent polling shows that Prop 26 has been gaining a bit more support among the electorate.

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Comments

Kevin Lewis Oct-31-2022

Disingenuous bullcrap

I've been in CA the last few weeks, and good gravy, the sheer volume of TV ads...and billboards...and the other day, the box my Big Mac came in said, VOTE NO ON PROP 26. Well, maybe not that last one. The common theme is how a) the evil cardrooms want to screw over the citizens of California, or b) the evil tribal casinos want to screw over the citizens of California. We're told to "stand with the tribes" in voting for 26 or against 27 or maybe on 53 or whatever. Then we're told to weep in our beer for the noble poker rooms, who will be bankrupted if 26 passes, or is it 27?

All I know is that both the tribal casinos AND the cardrooms are horrible places to gamble; they charge high fees for everything and pitch crappy games. They're ALL rich and greedy. I personally don't care if they all burn to the ground, and I get the sense that not many Californians care, either. A plague on both their houses.

Ray Oct-31-2022

Tell us what you think Kevin

Sounds like Kevin is in favor of earthquakes and forest fires. The richness and greed and crappy game rules could apply to just about any jurisdiction that has gambling (with the lotteries right at the top). I guess the biggest problem anyone involved with Vegas has is it's too close to home. Illinois? We don't care. Mississippi? We don't care. East coast? Who cares!...but California? Horrors!! That might cut into the gouging in Vegas!

jay Oct-31-2022

The adverts..omg

As a Canadian I enjoy watching a good game of Hockey, particularly because I had fond memories of sitting around the TV with my father. We didn't have much soda as kids, so a big bowl of popcorn and a coke made Hockey night a family event and mom would make Hot Chocolate at 1/2 time. Hers laced with a good shot of Grand Marnier. 

What drives me crazy now is the incessant advertisements throughout the game for online sports betting. Maybe sitting around the TV with the family is a good venue to speak the evils of gambling but I find that it really detracts from this being a family oriented event. If my kids were at the impressionable ages of 14-19, with every media influencer giving it a thumbs up I think this is going to really have a detrimental effect on the family. 

Canada is small market - 33mm people, smaller than California. Once this prop passes. The advertisements are just going to explode across every major sport when real money hits the table.

Llew Oct-31-2022

Ads

Californians have nothing on us here in PA.  Oz vs Fetterman.  Keeping the local TV stations in business, enough for the next two years. 
Thank goodness for DVRs and fast forward. 😛

Roy Furukawa Oct-31-2022

Poor Tribes!

The poor tribes, they barely have enough money to spend nearly a quarter of a BILLION dollars on ads to try to get Prop 26 passed and 27 done away with so they can grab another few billion every year.

Question of the Day - 31 October 2022

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