FREQUENTLY ASKED QUESTIONS

Where does the revenue created by Prop 27 go and how can Californians be sure it will be spent as intended?

Eighty-five percent (85%) of all revenues raised will be placed in a trust account to fund homelessness solutions and mental health priorities – such as housing and substance abuse treatment – across California. This funding can only legally be spent on these priorities. The initiative requires the California State Auditor to conduct regular audits of all programs receiving funding to ensure every dollar is accounted for. Any state or local agency that misuses the funds can be compelled to return the misappropriated revenue. Fifteen percent (15%) of all revenue raised will be set aside to support Tribal communities.

How much new revenue will Prop 27 generate?

The state’s independent financial analyst reviewed the initiative and found that the state can expect “mid-hundreds of millions” in tax revenue each year to fund homelessness and mental health solutions. The initiative accomplishes this through a 10% tax on gross online sports betting revenue and $100 million license fees paid by each online operator who participates in the market.

Under the initiative, will every online platform be required to partner with a California Tribe? How will non-gaming Tribes benefit?

Yes. Prop 27 recognizes the important role of California Tribal nations in gaming. Any online sports betting operator seeking to participate in the California marketplace must do so by partnering with a California Tribe. Gaming Tribes may also launch their own independent online sports betting platforms. Even Tribes who don’t participate in the online sports betting will benefit. Under the initiative, 15% of the measure’s tax revenue will be allocated to California Tribes who don’t participate in the online marketplace.

Isn’t online sports betting already legal in California?

No. A massive illegal, illicit online sports betting market is flourishing in California, with unscrupulous offshore betting websites providing the only avenue for Californians to place bets online and providing no revenue to the state. This initiative replaces those unregulated and untaxed illegal offshore sportsbooks with a safe, legal online sports betting market. Only well-established and regulated platforms with a track-record of safely operating in other states will be allowed to operate in California. Over half the country has authorized online sports betting in some form – proving that sports betting can be safe, regulated and generate significant revenue. Online sports betting is helping these states solve big challenges. California shouldn’t be left behind.

Will Prop 27 make it easier for minors to place bets on sports or make problem gaming worse?

No. The initiative strictly limits online betting to individuals 21 years of age or older by requiring use of the most modern and proven know-your-customer technology, akin to the advanced systems utilized by global financial institutions, to enforce restrictions. Extra funding is provided to the state’s problem gaming treatment program, and the Act requires that online operators follow the same rules as in-person casinos to exclude those experiencing problem gaming.

Does Prop 27 allow betting on high school or youth sports?

No. The initiative expressly prohibits betting on high school or youth sports.

Who is behind Prop 27?

A coalition of homelessness advocates, tribes, mayors and respected national entertainment companies are all backing the campaign.