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California’s struggle with online sports betting legalization

California Proposition 27 would have legalized online sports betting in California with a portion of the revenues going into a Homelessness Prevention Fund. The proposition was defeated at the ballots on Nov. 8, 2022 at the U.S. midterm elections. Graphic credit: Stephanie Morales

California’s Proposition 27 aims to legalize online sports betting while funding homelessness, but it may also increase gambling pressures on college athletes and students.

The proposition, involving three gaming operators, seeks to boost economic markets and grant these operators control over the timing of market launches.

If passed, companies are required to pay a one-time fee and partner with Native American tribes, which would use their tribal names for sports betting platforms.

Although Prop 27 did not pass in 2022, the focus on its impact on Native American tribes and the gaming industry has diverted attention from concerns about how betting could affect college sports programs.

In February 2024, during the NCAA Women’s Final Four, President Charlie Baker expressed concern that athlete Caitlin Clark’s overall performance was receiving more attention than the tournament itself.

According to the Associated Press, Baker raised concerns about the threats athletes might face from dissatisfied bettors. He then urged states to ban sports betting, specifically on individual players. 

If Prop 27 were enacted, it could determine the integrity of college athletics. Following the objections from Baker and the NCAA, states have gradually begun to eliminate prop betting.

Sports betting is not only a challenge for athletes; it has also led to increased bankruptcy rates in states due to the rise in sports wagering.

Findings from UCLA and USC show that states with sports betting have a 0.3% drop in credit scores, while those with legalized online betting see a decline three times greater.

Additionally, the study emphasized that adolescents and individuals from low-income families are at the highest risk of being exposed to sports betting.

Normalizing gambling can lead to significant issues, including substantial debt. This amount of wagering is detrimental to states, as it often results in financial problems for residents. 

SPUR’s voter guide recommended voting against Prop. 27, citing the lack of established fundamental rules for online betting in California and noting concerns about the potential for gambling addictions.

Although mental health issues have risen for various reasons in recent years, gambling is often overlooked as a contributing factor.

Students appear to be unaware of the potential effects of gambling and prop bets, particularly on mental health.

A 2023 NCAA study, covered by ESPN, found that 58% of young adults have participated in sports betting and 70% believe that it enhances their chance of winning. This belief could harm students rather than benefit them. 

When asked about potential consequences for students placing bets, ESPN said only “21 of the 24 schools contacted by ESPN declined to comment or did not respond to multiple emails asking about their educational efforts around gambling.”

Although California’s Prop 27 failed to pass before 2022 and is not on the ballot this election, there is no guarantee that it cannot resurface in the future.

It is every Californian’s responsibility to prevent Prop 27 from being legalized in the future. Sports betting compromises the credibility of games and adversely affects the portrayal of athletes.

Given the dedication athletes put into their work, they do not deserve to be reduced to mere bets based on their performances.

College sports programs should be properly respected and colleges should continue to impose restrictions on sports betting.

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