Although only 41% of all precincts have reported, it’s clear that both tribal and private-sector gaming suffered a stunning defeat in California last night. Both the tribes’ Proposition 26 and Big Gaming’s Proposition 27 are losing—and by wider margins than expected. 70% of Californians voted “no” on Prop 26 and 83% nixed Prop 27. The only clear winners in this scenario are the Golden State’s card rooms, which surely would have been litigated out of existence had Prop 26 passed (due to some fine print in the ballot measure).
Prop 27’s backers are now spinning that this was just a dry run for 2024. Before anybody files another ballot initiative, we urge both sides to come to the table and try to hammer out their differences. This would include A) tribal-private partnerships, B) a lower cost of entry, unlike Prop 27’s minimum of $10 million, C) a reasonable tax rate such as Prop 26’s 10% and D) no more dissembling about what your proposition is about, like ending homelessness. It’s about sports betting—and voters saw clear through you. Oh, and ixnay the hundreds of millions of dollars in attack ads; it’s a surefire path to defeat.
In other news …
Pollsters blew it in Oklahoma, where Gov. Kevin Stitt (R) breezed to reelection. This is bad news for the state’s gaming tribes, who must brace themselves for another four years of treatment as second-class citizens. They bet heavily on Democratic challenger Joy Hoffmeister and lost. This outcome will surely empower Stitt’s “Call me Bwana” tribal policies. He may be part-Cherokee by blood but his soul is lily white.
In another gubernatorial race tangentially related to casinos, New York State Gov. Kathy Hochul (D) blew past challenger Lee Zeldin (R). The gaming industry had been firmly in Hochul’s camp and her reelection bodes well for supporters like MGM Resorts International and Genting Group, both of whom hope for full-fledged casino status. Ditto casino aspirants Wynn Resorts, Hard Rock International and Bally’s Corp., maybe not so much Las Vegas Sands, which only sent Hochul a timid $5K and can’t even settle on a casino site. Sands would, on paper, be our top choice of a New York City casino but it’s dithering on the sidelines while Caesars Entertainment and Wynn are running the ball up the middle of the field.
It could be days before we know the outcome of delay-prone Nevada elections, with the fates of Congressional Gaming Caucus members Rep. Dina Titus (D, above) and Rep. Susie Lee (D) hanging in the balance. Statewide, it appears that Gov. Steve Sisolak (D) will pay with his job for bravely shutting down Nevada in 2020 to choke off the spread of Covid-19. It also throttled Sisolak’s political aspirations, as he is narrowly losing to Clark County Sheriff Joe Lombardo (R). Sometimes there’s a price to be paid for doing the right thing and not a good one. The gaming industry is also set to lose an advocate in Sen. Catherine Cortez Masto (D), who trails Adam Laxalt (R). Among the collateral damage from these two races will be a big loss of clout for the Culinary Union, which knocked on over 800,000 doors on Sisolak’s and Cortez Masto’s behalf, seemingly without avail.
Finally, Texas Gov. Greg Abbott (R) and Georgia Gov. Brian Kemp (R) easily won reelection, so we hope their fan dancing about possible approval of sports betting and casinos is more than just election-year mouthwash. And the best part of the day—no more campaign ads (except in Georgia). Everybody wins!
Quote of the Day: “It always seems impossible until it’s done.”—Nelson Mandela