California Cities, Elected Leaders and Organizations Join Growing Coalition to Oppose Proposition 26

Measure will Cause $5.5 Billion in Lost Economic Activity for California Communities and $500 Million in Lost Tax Revenue

SACRAMENTO, Calif. (June 8, 2022) – Opposition to the qualified tribal gaming initiative continues
to grow with new California organizations and community leaders today announcing their opposition
to the initiative – the only sports betting measure being contemplated for the November 2022 ballot
that harms local communities.

Newly announced organizations and community leaders opposed to this initiative include:

LOCAL GOVERNMENTS, ELECTED OFFICIALS, AND COMMUNITY LEADERS:

● City of Lynwood
● City of Compton
● City of Citrus Heights
● Dr. Tecoy Porter, Senior Pastor, Genesis Church

● Jorge Casanova, Mayor, City of Lynwood
● Mike Karbassi, Councilmember, City of Fresno
● Rob Poythress, Supervisor, County of Madera

ORGANIZATIONS:

● Bell Chamber of Commerce
● Black American Political Association of California
● Black American Political Association of California – Sacramento Chapter
● California Animal Welfare Association
● Compton Chamber of Commerce
● Fresno Police Officers Association
● Los Angeles Latino Chamber of Commerce
● Norwalk Chamber of Commerce

● Santa Fe Springs Chamber of Commerce
● Society for the Prevention of Cruelty to Animals Los Angeles
● Southern California Black Chamber of Commerce, Hollywood
● Southern California Black Chamber of Commerce, Culver City

● Stanislaus County Democratic Central Committee

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

Prop 26 proposes to amend the State Constitution 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 weaponizing the Private Attorneys General Act (PAGA) so it can be used against tribal casino operators’ legally-operating competition.

Specifically, this change in the State Constitution 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. The eligible tribal gaming measure changes the Constitution and sets a
dangerous precedent that could result in the loss of tens of thousands of quality jobs in minority communities. 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. The measure expands PAGA 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. The eligible tribal gaming measure 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.