What happened
For any sports team at any level, the recognition of looming defeat is a bitter feeling that can be tough to face. So it was with DraftKings (DKNG 4.96%) on Tuesday. The online sports-wagering company's share price slid by over 4% on its leader's acknowledgement of a big potential loss.
So what
In an interview with Bloomberg published this morning, DraftKings CEO Jason Robins essentially admitted that one of the two propositions to legalize online sports betting will fail. He was referring to California's Proposition 27, which if passed by voters would flip the switch on online and mobile sports betting for companies partnering with a Native American tribe in the business.
This is not the only such measure being put to a vote this Election Day. Californians will also consider Proposition 26, which would legalize such wagering, but only in person at retail locations.
Last week, TV station KQED in Northern California quoted a survey by the University of California, Berkeley, Institute of Governmental Studies revealing that only 27% of respondents said they would vote yes on Proposition 27. That number rises for Proposition 26, but only slightly, to 31%.
Both measures have received significant donations from contributors. According to KQED, as of its reporting, nearly $228 million had been poured into the effort to pass Proposition 27.
Now what
DraftKings is obviously an ardent supporter of Proposition 27. And if the measure doesn't win approval, its CEO is hopeful that later efforts will succeed. "More than likely this will pass in 2024," he told Bloomberg.
But given the weak levels of support at the moment, it might be more a matter of public sentiment than time -- and that's not favorable for legalization in the Golden State.
