Measures on at least two states’ ballots to expand sports betting face a tougher hurdle for passage because of the presidential election, according to panelists speaking Thursday at the SBC Digital Summit.
Maryland voters will decide in November whether to legalize sports betting; if it passes, the legislature will likely determine in 2021 how it operates. Californians may vote in November to allow sports betting at tribal properties and racetracks; signatures to put it on the ballot were halted in March when the state put in place stay-at-home orders.
Panelist John Pappas, founder and CEO of Corridor Consulting based in Washington, D.C., cautioned that any November ballot measures to approve sports wagering in Maryland and California could be endangered by what’s expected to be a strong turnout of progressive women out to defeat President Donald Trump in the Nov. 3rd presidential election.
“It’s (important) to recognize that this is a presidential election year and there’s a likelihood of a high turnout of progressive and female voters — both of which may not look favorably at sports betting legalization — not only in Maryland that is a pretty liberal state, but a state like California where this could potentially be on the ballot as well. I think there are a lot of question marks whether the ballot referendums would pass there without an aggressive push from the industry or others to promote it and do that education.”
Stacie Stern, director of governmental affairs for sports betting operator FanDuel, said passage of sports betting in Maryland isn’t the sure thing that some expect.
“I think it’s a really big if,” Stern said. “I was involved in the Colorado referendum (that passed in November) and that was an uphill battle. It’s maybe not as bad as Maryland. This is still an issue that doesn’t poll well with voters and there’s a ton of education that has to go into telling people why it’s important to vote in favor of sports betting and why it’s good for their states.”
Stern said that because it’s a presidential year with other important races on the ballot, there will be a lot of political ads on broadcast and cable television. Ad rates will be expensive, she added.
“It comes down to who is willing to pony up and pay for a referendum to educate and get out the vote, knowing it’s not a guarantee that this passes,” Stern said. “That is why to look in the next couple of months to what kind of coalition can be formed to fund the referendum.”
Matt Carey, a reporter with Vixio Regulatory Intelligence and Maryland resident, said that the results of the election aren’t a certainty, but he’s “fairly optimistic about the passage.”
If the voters approve the Maryland measure, it will be up to legislators to determine who’s eligible to offer betting, along with tax rates and licensing fees. A bill that didn’t make it through the legislature would award licenses to casinos, racetracks and sports teams and would have included in-person and mobile wagering. A disparity study to determine whether racial minorities or women are at a disadvantage in participating in the betting industry will help shape the decision.
