Lessons have been learned from California sports betting failure, says SBA president
Jeremy Kudon insists commercial gambling operators will work with tribes in the Golden State after Proposition 27 was trounced at the ballot box in 2022
Sports Betting Alliance president Jeremy Kudon has claimed US operators have learned lessons from the failed attempt to legalize sports betting in California and will work with the tribes in the future.
Speaking on a Zoom webinar with Indian Gaming Association conference chair Victor Rocha and Indian Gaming Association executive director Jason Giles, Kudon said the 2022 failure to bring online sports betting to the Golden State had served as a steep learning curve.
Two years ago, Proposition 27 was included on the ballot for the California elections, which would have legalized mobile sports betting in the state, with tax dollars going to homelessness, mental health, and tribal support services.
FanDuel, DraftKings, BetMGM, Fanatics, and PENN Entertainment all committed funding to the ‘Yes on 27’ campaign as operator clashed with tribal leaders.
‘Yes on 27’ eventually secured $169.2m in funding, with FanDuel committing $35m and DraftKings adding $34m.
BetMGM, Fanatics, and PENN Entertainment all donated $25m each.
However, as Californians went to the polls, Proposition 27 was roundly rejected by 82.28% of the electorate, according to Ballotpedia.
Reflecting on the defeat, Kudon said: “I think our intentions were pure, but we learned a lot from that. We learned to allow the tribes to lead going forward.
“You always look at these things as the worst thing that could ever happen. I think ultimately, we’re going to see [Proposition] 27 to be one of the best things that happened, because we learned how important it is to follow your lead and follow the tribes lead and work together.
“When you guys are ready to do it, we’re going be there to help you in any way, shape or form that you think is best.”
The Sports Betting Alliance represents FanDuel, DraftKings, BetMGM, and Fanatics.
In comments reported by Legal Sports Report in April, FanDuel CEO Amy Howe said the rejection of Proposition 27 had been a “spectacular fail.”
She said: “While our efforts were well-intentioned, they were fairly misguided and ill-informed. What today is about is really an opportunity to reset.
“We’ve been trying to just listen and learn as much as possible before we jump back into coming up with solutions.
“Because as I said today, at the end of the day, if legalized sports betting is going to be successful in the state of California, it’s going to be through and with the tribes, not against the tribes.”
While the commercial operators were handed a defeat in 2022, the tribes own Proposition 26, which would have legalized sports betting at Indian casinos and licensed racetracks, was also rejected at the ballot box.
Kudon’s comments came as part of a wider discussion with Rocha and Giles in which the trio touched on the growing sweepstakes casinos vertical, which Kudon labelled as a “pandemic.”