California Elected Officials and Organizations Join Growing Coalition to Oppose Proposition 26: October 24, 2022

Measure could Result in $500 Million in Lost Tax Revenue for California Communities

SACRAMENTO, Calif. (October 18, 2022) – Opposition to Proposition 26 continues to grow with additional California elected officials and organizations announcing their opposition to Proposition 26 – the only sports betting measure on the November 2022 ballot that directly harms local communities. 

Newly announced elected officials and organizations opposed to Proposition 26 include: 

● Jennifer Perez, Councilmember, City of Norwalk
● Dan Kalb, Councilmember, City of Oakland
● Dennis Townsend, Supervisor, County of Tulare
● Tony Ayala, Councilmember, City of Norwalk
● Democrats for Neighborhood action
● East Area Progressive Democrats
● Los Angeles County Taxpayers Association
● MLK Democratic Club
● San Bernardino Free Them All
● Animal Defense Legal Fund
● San Marcos Democratic Club

Today’s announcement adds to the chorus of cities, local elected officials, organizations, and community leaders already opposed to Prop 26, including California Contract Cities Association, representing over 70 cities, Gateway Cities Council of Governments, AFSCME California, Disabled American Veterans, California Hispanic Chamber of Commerce, Los Angeles County Business Federation, among hundreds of others.

Prop 26 proposes to amend state law to guarantee tribal casinos a near monopoly on all gaming in California – adding exclusivity over roulette, craps and sports wagering to their current monopoly on slot machines — while giving private trial lawyers the powers of the Attorney General so it can be used against tribal casino operators’ legally-operating competition.

Specifically, this change in state law allows tribal casinos to hire private trial lawyers and replace the role of the Attorney General to sue their non-tribal competitors. As a result, the measure puts more than 32,000 jobs, $1.6 billion in wages and $5.5 billion in total economic impact at risk. Cities rely on this revenue for resident services such as public safety, housing and homeless programs.

BACKGROUND ON THE MEASURE:

It threatens to destroy local jobs. Prop 26 changes the Constitution and state law to set a dangerous precedent that could result in the loss of tens of thousands of quality jobs in communities of color. Tribal casinos have a history of unsuccessfully challenging the legality of local cardrooms. Now, they’re taking it a step too far by exploiting the Private Attorneys General Act (PAGA) that was originally meant to protect workers. Prop 26 expands private action lawsuits into new territory by allowing tribal casinos to sue their competitors — forcing cardrooms out of business with unlimited, meritless lawsuits. Local communities will lose more than 32,000 good paying jobs that generate $1.6 billion in wages annually.

It deprives local governments of revenue for vital services. Prop 26 contains a poison pill for local cardrooms, which are a significant source of tax revenue and economic activity for many local governments. The measure will force cardrooms out of business and result in a loss of $500 million in local tax revenue statewide — meaning fewer funds for public health, homelessness services, senior centers, and after-school programs.  California and local communities will lose $5.6 billion in economic output generated by cardrooms.