State analysts say the proposition could generate as much as tens of millions annually for the state.

Any penalty and settlement money that results would go to the state. The proposition also would have created a new way of enforcing some gaming laws, allowing anyone to bring a lawsuit if they believe the laws are being violated and the state Justice Department declines to act. It doesn’t tax tribes, which are sovereign nations, but it requires tribes to reimburse the state for the cost of regulating sports betting. It taxes sports bets placed at horse race tracks. The proposition would also have allowed tribal casinos to begin offering roulette and dice games, including craps. Age restrictions on sports betting at tribal casinos would need to be negotiated by California’s governor and each tribe, and written into each tribe’s compact with the state. At race tracks, sports betting could only be offered to people 21 or older. 26 would have allowed tribal casinos and the state’s four horse race tracks to offer in-person sports betting. Voters resoundingly rejected Proposition 26, with 67% against.

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