The question of legalized sports betting in California has become the most expensive ballot fight in California’s history.  

Two propositions on the November ballot, Proposition 26 and Proposition 27, offer competing visions of legalized sports betting. Each needs to surpass 50% to become law, and if they both do, the one that gets more votes will win out, though litigation is expected in that scenario.

• Between the two propositions, supporters and opponents have raised $364 million.
• Prop 26 allows sports betting only on tribal lands. Annual revenues to the state under this law would likely increase by tens of millions of dollars, per the California Legislative Analyst’s Office.
• Prop 27 would allow for mobile sports betting. Sportsbooks would be able to participate after paying $100 million for a five-year license (renewals cost $10 million) and partnering with a tribe. 
• Annual state revenues under Prop 27 are estimated in the hundreds of millions of dollars, but likely no more than $500 million.

DraftKings, FanDuel, BetMGM, Wynn Resorts, and some tribes have thrown money behind Prop 27.

Political action committees have raised huge sums, including one supporting Prop 27 that raised $150 million. Another, which promotes Prop 26, raised $106.7 million.

Power Play

Tribal governments have shown their political sway in California, first by lobbying against legislative measures that would have legalized sports betting, then by helping to secure opposition to Prop 27. 

The state Democratic and Republican parties found a rare moment of agreement, with each officially opposing Prop 27.

Andretti Global, the parent company of Andretti Autosport, has announced plans to build a new $200 million global racing headquarters in Fishers, Indiana.

“For us, it’s about more than just having somewhere to work on the cars,” said CEO Michael Andretti. “It’s about having the global motorsport home and sharing that with our people, our fans, and our sponsors to advance the sport and leave a lasting legacy.” 

• The project will be a 575,00 square-foot facility across 90 acres.
• It is pending approval from the Indiana Economic Development Corporation board.
• Andretti Global hopes to have the facility operational by 2025.
• By 2026, it could add up to 500 jobs to the local community. 

Costs of building the new facility will be partly subsidized by the IEDC, which plans to invest up to $19 million in Andretti Autosport through conditional tax credits once the project is approved.  

‘Racing Capital of the World’ 

Andretti Global joins McLaren Racing as motorsport giants building facilities in Indiana — “the racing capital of the world.”

In May, McLaren Racing announced it will build a $25 million IndyCar facility in Indiana. The 97,000-square-foot facility will be operational within the next two years.

“We want to have a bigger North American platform than our competitors in Formula 1,” McLaren Racing CEO Zak Brown told Front Office Sports.

Sony PlayStation is facing a class-action lawsuit in London that could seek up to $5.9 billion in damages over allegations of overcharging customers for video games and in-game purchases.

At the heart of the lawsuit are claims that Sony’s role as a major player in the $200 billion global gaming market allowed the company to administer unfair conditions to developers.

As a result, developers allegedly provided customers with “excessive and unfair” pricing.

• The lawsuit was filed at London’s Competition Appeal Tribunal.
• It is pending approval by judges as an opt-out collective action.
• The class-action suit could include 8.9 million customers.

Customers eligible for compensation are those in the U.K. who have purchased digital games and content on their PlayStation console through its online store since August 2016.

Sony’s PlayStation Network — which includes the PlayStation Store — has roughly 102 million monthly active users as of June 2022, down from 111 million users in December 2021.

Done Deal 

Sony is facing a potential legal hurdle, but will otherwise look to benefit from its recent purchase of Bungie, the original creator of “Halo” and the current developer of “Destiny.”

In July, Sony closed its $3.6 billion deal for Bungie, which will continue to independently develop and publish games but will use Sony to accelerate the development of projects.

Electronic Arts’ signature soccer game will no longer bear the FIFA name in the near future, but it will still enjoy participation from nearly every major soccer league across the globe.

Most recently, the company extended its partnership with MLS, which has worked with EA since 1999.

EA and FIFA ended their long-term licensing agreement this year, meaning September’s “FIFA 23” will be the last EA title to carry the governing body’s name for now. The following game in the series will be titled “EA Sports F.C.”

• In addition to MLS, EA has agreements with over 300 partners, including the Premier League, Bundesliga, and Serie A. 
• The deals cover more than 700 teams and 19,000 athletes.
• Earlier this month, EA struck a deal to become La Liga’s title sponsor, replacing Spanish bank Santander.

“There are a good chunk of La Liga fans that are fans because they play FIFA, and not necessarily because they watch games on the weekends,” La Liga North America CEO Boris Gartner told Front Office Sports.

Women’s Soccer Gets in the Game

“FIFA 23” will be the first EA title with women’s teams, including the top-flight English and French leagues, Barclays FA Women’s Super League and Division 1 Arkema.

The NWSL and Frauen-Bundesliga have been rumored to be part of the game as well, but neither league has been announced as of Tuesday.