Major bookie companies, such as BetMGM, DraftKings, and FanDuel, failed to convince California voters to legalize sports betting. As a result, Californians rejected Proposition 27 with a margin of 83.4 percent to 16.6 percent.
It is the end of the most expensive referendum battle in US history. According to bookie pay per head blog sources, stakeholders spent millions of dollars on 30-second TV ad spots. Also, the bookie companies spent $169 million on the Yes on 27 campaign to make voters approve the measure.
On the other hand, Native American tribes spent $237 million to legalize sports betting on tribal grounds. According to bookie pay per head reports, casinos are crucial sources of employment and revenue for tribes. Thus, they wanted to maintain their monopoly on gaming in the state. However, voters also rejected Proposition 26, which would allow betting in tribal casinos.
Major Bookie Companies Take a Hit in California
According to Global Gambling News reports, gambling firms have been aiming for the California sports betting market. The state is home to 15 professional sports teams. Also, it has an economy comparable to Germany. According to bookie pay per head experts, Prop 27 could have created the largest sports betting market in the US. They estimated the market to bring $3 billion in yearly revenue.
However, it seemed like supporters of Prop 27 knew what the result would be weeks before the November 8 elections. They canceled more than $10 million worth of ads during the period. Analysts said that legal sports betting in California would remain a pipe dream.
The defeat in the polls represented a massive setback for the potential industry in the state. Around 35 states already have legal sports wagering. However, Texas, Florida, and California haven’t legalized the activity. They are the three most populous states in the US.
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