The midterm elections in the United States in 2022 are significant for various reasons, but they feature few gambling regulation issues on the ballot. Instead, these elections present a chance to address long-standing issues that have affected policymaking regarding gaming legislation, including sports betting and casino regulations.
Only California and Georgia have gambling-related measures directly relevant on their ballots. In California, voters will decide on two statewide propositions, 26 and 27, which propose constitutional changes.
Polling data indicates that both propositions are unlikely to succeed. Proposition 26 would permit Native American casinos and four horse racetracks to offer in-person sports betting, and it would also allow tribal casinos to add roulette and dice games. Both tribes and racetracks strongly back this measure.
Conversely, Proposition 27 seeks to legalize retail and mobile sports betting for commercial gaming companies and tribes. Tribes oppose this proposition as they believe it undermines their gaming monopoly established through state compacts. Spending related to both measures is nearing $500 million, leading to the formation of various pro and con groups. The mixed messaging and lack of significant editorial endorsements contribute to voter confusion and dwindling support. Currently, only 31% of the electorate favors Proposition 26, while 42% oppose it. For Proposition 27, support stands at 27%, with 53% against it.
This situation underscores the necessity for unified backing among all pro-gaming stakeholders for any gaming measures to succeed. Fragmented messaging has proven detrimental.
In Georgia, although no new gaming legislation is directly on the ballot, the gubernatorial race has become a proxy for gambling issues. A proposed constitutional amendment to allow casino resorts has been under consideration for decades, with recent focus shifting to sports betting.
Attempts to legalize sports betting have repeatedly failed. Former Governor Nathan Deal and Brian Kemp, the current governor, have historically opposed casino resort legislation. Kemp has recently stated he would work with the legislature if it decided to pursue sports betting.
Stacey Abrams, Kemp's Democratic opponent, has backed both sports betting and casino resort legislation, recognizing the significant support these measures have among voters. Polls indicate that 57% of Georgians support sports betting and 64% favor casino resorts. A victory for Abrams could enhance the chances for these initiatives, but conservative lawmakers would still present obstacles. Even if she wins, legislation to put a constitutional amendment before voters would need to be passed, followed by successful enabling legislation. The process could mean that sports betting might not become a reality until 2025, with casinos potentially opening by 2027.
Texas, one of the most pivotal states in the conversation surrounding gaming, attracts considerable attention due to Governor Greg Abbott's openness to casino resorts. Texas has considered casino gaming for decades, despite strong opposition in this conservative state. However, public opinion is shifting, with 57% supporting casino gaming and 43% backing sports betting.
Texans frequently travel to casinos in Louisiana and Oklahoma, losing potential tax revenue to those states. With a strong sports culture and backing from many professional sports teams for sports betting, the landscape is evolving. The Sands Corporation has invested $2 million into efforts to promote gaming legislation, but Abbott's support does not guarantee success. The same legislative hurdles concerning a constitutional amendment must be overcome, with the conservative political climate posing challenges.
The impact of 2022 election outcomes is also notable in Minnesota, where all 201 legislative seats and various statewide offices will be contested. Tribal dominance in gaming will play a crucial role in future legislation as tribes previously supported sports betting in the House. However, a Senate proposal failed due to concerns regarding tribal exclusivity. Polls indicate strong public support for sports betting but limited backing for exclusivity.
In Kentucky, polling revealed widespread support for sports betting, with 69% of Democrats, 58% of Republicans, and 81% of independents in favor. A bipartisan bill passed the House in 2022 but failed in the Senate. The upcoming elections may bolster the prospects of sports betting, particularly if the sitting governor supports it.
Missouri also continues to face challenges, having failed to pass sports betting legislation multiple times. A bill permitting both retail and online sports betting passed the House but failed in the Senate in 2022. Internal conflicts delayed passage, although bipartisan support exists.
North Carolina narrowly saw sports betting bills fail in 2022, largely due to the inclusion of college sports wagering. With strong gubernatorial support, future efforts in 2023 seem viable, contingent on resolving contentious issues.
In South Carolina, sports betting initiatives stalled in 2022, with little hope for progress in 2023, particularly given the incumbent governor's opposition.
Oklahoma's midterms center on the gubernatorial race between incumbent Kevin Stitt and challenger Joy Hofmeister. Stitt has had a contentious relationship with Native American tribes, impacting sports betting discussions. Past proposals for retail sports betting were met with resistance and failed to advance in the legislature.
Overall, while the 2022 midterm elections may not directly facilitate significant gaming legislation, they set the stage for ongoing discussions about sports betting and gaming expansion in 2023 and beyond, albeit with fewer immediate opportunities for change.
