5/14 Forever: How California’s Foray Into Sports Betting Could Help Tackle Homelessness and Mental Health
In November, Californians will decide whether or not to legalize sports betting in the state. One of the proposals they’ll be voting on, though, has a name that stands out.
Dimers.com writer Michael Krumholtz details the ongoing battle in the Golden State.
The California Solutions to Homelessness and Mental Health Support Act promises to act as a one-two punch for the state that will provide hundreds of millions of dollars to help social causes from tax revenue taken from a regulated sports betting industry.
According to the act that is being propped up by homeless advocates and mayors across the state, more than $500 million would go straight to housing services and mental health programs for California’s homeless residents. Not surprisingly, it is also getting lots of support from sportsbook giants like BetMGM, DraftKings and Fanduel who have all stated their commitment as backers of the proposal.
It would mark the first such measure in any U.S. state that supplies a constant source of revenue to address homelessness which is a pervasive problem in the country’s most populated state, as there are estimated to be more than 160,000 unhoused people.
The California Solutions to Homelessness and Mental Health Support Act will raise hundreds of millions of dollars annually to fight homelessness and expand mental health support in California.
— Yes on 27 (@CASolutions_Act) August 31, 2021
Read more from campaign manager Dana Williamson: pic.twitter.com/34UHWR6vw0
And there is a clear blueprint for California to follow, as New York has found success giving back to its own social programs with the hundreds of millions of dollars in tax revenue it has generated since legalizing sports betting at the beginning of the year. For its part, 100 percent of New York’s tax revenue from sports betting goes to fund education, youth sports, and efforts to help gambling addiction.
The proposal would funnel 85 percent of tax revenue from the industry into programs that help combat homelessness and aid with mental health objectives, like curbing substance abuse. The other 15 percent would then go to California’s tribal communities that don’t get involved in online sports betting.
Tonight, the @CA_Dem Executive Board Resolutions Committee unanimously voted to oppose #Prop27, the out of state corporate online sports betting measure. Prop 27 is bad for California Native American Tribes and bad for all Californians. #NoOnProp27 pic.twitter.com/uBQ96OvwIA
— NoOnProp27 (@NoProp27) July 10, 2022
These same tribes have come out in opposition to the proposal because they want purely retail betting that has to happen in their casinos. and do not want California to open up online sports betting, which has proven to be quite popular in states where it has been enacted. Tribes have raised hundreds of millions to combat the proposal, releasing attack ads insinuating that if the proposal became law it would lead to children becoming addicted to gambling.
However, the California Solutions to Homelessness and Mental Health Support Act addresses the issue of tribal sovereignty by requiring that all sportsbook operators who get licenses in the state must partner with local California tribes. And tribes will be able to launch their own online sportsbook platforms.
Other critics of the initiative say that it will effectively prevent smaller operators from making money in sports betting, paving the way for the major U.S. sportsbooks to dominate the industry in California. That’s because the proposal requires non-tribal operators to pay a $100 million fee and be actively doing business in at least 10 other states.
NEWS: The California Democratic Party has voted to oppose the online sports betting initiative backed by DraftKings, FanDuel and BetMGM. @sam_mcquill on what this means for the future and competing bills: ⤵️https://t.co/OL9Cao05My
— Action Network (@ActionNetworkHQ) July 11, 2022
The other proposals on the ballot come November are all created and backed by California’s tribes, which have long held exclusive rights to gaming over the state. One would allow for just retail betting while another would give them the sole proprietorship over online betting on top of retail.
The battle over the California Solutions to Homelessness and Mental Health Support Act continues and it’s going to be interesting to see what voters decide come November.
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Michael Krumholtz is a veteran sports writer who has covered global sports, from World Cup qualifiers to college football, and has worked as an editor for a sportsbook, gaining valuable sports betting experience.
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