Once again the California legislature has let us down. Sports betting is now legal if approved by a state. Given that sports betting is inevitable, better for the state to benefit than for the revenue to go to illegal sources. The state legislature should have carefully crafted sports betting legislation to maximize benefits and minimize abuses. But pigs still do not fly.
Instead, as is so often the case, we are left at the mercy of the proposition process. There are two propositions on the ballot. Proposition 27 is flawed. Backed by online sports betting companies it would allow unfettered online sports betting. This is of course harder to control than in person betting. Under age betting as well as gambling addiction may run rampant. It is just too easy.
As ads have pointed out, 90% of profits will go out of state, but that is only the tip of the iceberg. Most, if not all, operating costs will also go out of state. By focusing only on tax revenue we miss the point. Corporations spend money to make money. Operating costs, including labor costs, generally far exceed the profits they generate.
Proposition 26 captures both. Proposition 26 allows in person betting at Indian casinos and the four main California race tracks. This will of course yield tax revenue. But operating costs will also stay in California. Employees taking wagers will be in California. Installation of any necessary equipment, furnitures and fixtures will be here. In person betting is easier to control, and more jobs and money will stay in California. Vote yes on 26.
