California Voters Reject Both Proposition 26 and Proposition 27, Blocking Sports Betting Legalisation

California voters decisively rejected both sports betting ballot measures on November 8, 2022, leaving the most populous US state — and the world's fifth largest economy — without legal sports betting following one of the most expensive ballot measure campaigns in American history.

The Two Measures

Two competing approaches to sports betting legalisation appeared on the November 2022 California ballot:

Proposition 26 — Tribal Casino and Racetrack Sports Betting Proposition 26 was backed primarily by California's tribal gaming operators — the federally recognised tribes that operate the state's extensive network of tribal casinos. Prop 26 would have allowed in-person sports betting at tribal casinos and the state's two licensed horse racing tracks (Santa Anita Park and Golden Gate Fields). Online or mobile betting was not included under Prop 26, which was specifically structured to extend the tribes' existing casino gaming rights into sports betting. Roulette and dice games at tribal casinos would also have been permitted under Prop 26.

Proposition 27 — Commercial Mobile Sports Betting Proposition 27 was backed primarily by major commercial gaming companies including DraftKings, FanDuel, BetMGM, and others, and would have legalised statewide online and mobile sports betting operated by these commercial platforms in partnership with California tribes. The commercial operators invested heavily in Prop 27's campaign, viewing a California mobile sports betting market — with the state's 39 million residents — as the most significant untapped market in US sports betting.

The Campaign Spending

Combined spending on the two ballot measure campaigns exceeded $300 million, making the California 2022 sports betting campaigns among the most expensive ballot initiative campaigns in US history. Commercial operators spent heavily to promote Prop 27, while tribal gaming interests spent heavily to defeat Prop 27 (while separately supporting Prop 26). Both measures ultimately failed, with Prop 27 losing by a particularly wide margin.

Post-Election Context

The defeat of both measures left California sports betting discussions ongoing. The failure of Prop 27 specifically — despite massive commercial operator spending — demonstrated the difficulty of passing commercial mobile sports betting in California against tribal opposition, and shifted subsequent discussions toward tribal-only models more aligned with Prop 26's approach.