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

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

SACRAMENTO, Calif. (August 18, 2022) – Opposition to Proposition 26 continues to grow with
additional California cities and organizations announcing their opposition to Proposition 26 – the only
sports betting measure being contemplated for the November 2022 ballot that directly harms local
communities.

Newly announced cities and organizations include opposed to Proposition 26 include:

LOCAL GOVERNMENTS, ELECTED OFFICIALS:

● Central Oregon Wild Horse Coalition
● Front Range Equine Rescue
● Paw Project
● Return to Freedom
● Santa Paula Animal Rescue Center

POLITICAL ORGANIZATIONS:

● San Joaquin County Democratic Central Committee

BUSINESS ORGANIZATIONS:

● San Juan Capistrano Chamber of Commerce

 

Today’s announcement adds to the chorus of cities, local government officials, organizations, and community leaders 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.