News: All bets are off

Monday, August 8, 2022

All bets are off

Aug 08, 2022

By Jeremy B. White , Lara Korte and Sakura Cannestra

Presented by SEIU California

THE BUZZ: Sometimes, you have to spend money to get money by shaping how people bet money.

Rivers of cash have flowed towards buoying or burying rival sports gambling ballot initiatives. But the advertisements now flooding the airwaves have only been one piece of the puzzle. Tribal players also continued pressing the Legislature to rally political support against their foes — which, naturally, meant doling out some more lobbying lucre. A recent filing demonstrates that.

The San Manuel Band of Mission Indians increased its lobbying expenditures tenfold from April through June compared to the previous quarter as the tribal group augmented its influencer corps. The total vaulted from $260,000 to $3.4 million, which was the most anyone spent on lobbying that quarter and is up there with the highest single-quarter totals you'll see. It is by far the most on record for San Manuel.

That surge came as San Manuel was clashing with out-of-state gambling players like DraftKings and FanDuel. The tribe has framed a rival sports betting measure as an existential assault on tribal gaming, dropping $28 million so far to detonate Proposition 27 (proponents have spent $100 million so far). San Manuel also spent $15 million to qualify a measure letting tribes oversee online betting but fell short of the 2022 ballot after a late start. Much of their sports betting spending has been defensive, seeking to rebuff the platforms both inside and outside the Capitol. Tribal opposition helped derail an attempted deal in the Legislature last session.

Political relationships matter. San Manuel and allied tribes' central rebuttal to Proposition 27 is that it reneges on the contract California voters made with Native peoples by letting them conduct gambling. In the decades since tribes gained that authority, the revenue has helped transform them into formidable political players and prolific campaign spenders ($45 million from San Manuel alone this cycle, including to both parties and dozens of candidates and $500,000 against the Gov. Gavin Newsom recall). FanDuel et al. have not forged those types of inroads, although four big-city mayors have endorsed Proposition 27 because of homelessness funding.

But it's ultimately up the voters, of course. And you can take this bet to the bank: Platforms, tribes and card rooms are poised to spend a whole lot more than $3.4 million to sway the electorate between now and November. Have we mentioned this is likely going to be California's most expensive slate of ballot initiatives?

BUENOS DÍAS, good Monday morning. Circle Thursday. This week's big legislative moment will be Appropriations Committee suspense hearings that determine which bills hit the floor and which bills fall short.

Got a tip or story idea for California Playbook? Hit us up: jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte .

QUOTE OF THE DAY: "The question you have to ask is, is it safe to be pregnant in those states? I think you'd have to answer, 'No, it's not.' So either you move or you don't have sex." Rep. Jackie Speier on un-Californian states cracking down on abortion, via Vanity Fair .

TWEET OF THE DAY: California's @ SenAlexPadilla on 8am Sunday instant ramen and Tapatio: "After 12 straight hours of an all-nighter vote-a-rama, I'm not sure if this counts as breakfast or lunch — but I'm not gonna lie, it's hitting the spot."

WHERE'S GAVIN? Nothing official announced.

A message from SEIU California:

Multi-billion dollar fast-food corporations like McDonald's, Jack in the Box and Burger King are making massive profits off of a rigged model that pressures small business franchisees to cut corners, often at the expense of workers. California has an opportunity to give a voice to fast-food workers and local franchisee operators with AB 257 and reform an industry that puts working families, small business franchisees, and taxpayers at the mercy of global fast food corporations.

TOP TALKERS

— " After public outcry, San Clemente rejects anti-abortion 'sanctuary for life' resolution ," by the Orange County Register's Erika I. Ritchie and Kaitlyn Schallhorn: "But instead, City Council members ultimately hastily called a meeting on Saturday, Aug. 6 in the city's community center, drawing a crowd of hundreds. Protestors stood on the lawn and an overflow room was made available to those who didn't fit into the main area."

— " Court order halts UC Berkeley construction at People's Park likely until October ," by Berkeleyside's Supriya Yelimeli: "Judge Teri Jackson signed the stay order Thursday to allow the court to review an appeal petition by Make UC a Good Neighbor and the People's Park Historic Advocacy Group on their original California Environmental Quality Act (CEQA) lawsuit."

— Even the District Attorney Believed Joaquin Ciria Was Innocent. Why Did It Take So Long to Set Him Free? by POLITICO's Annie Rosenthal: Ciria and his supporters had had plenty of time to prepare for this moment, down to the outfit: It had been 32 years and a day since he was arrested for a murder he swore he didn't commit. Every day since — more than half of Ciria's life had been spent in California custody.

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CALIFORNIA AND THE CAPITOL CORRIDOR

— " 'We Just Won't Comply': Inside California's Push To Be The Ultimate Abortion State ," by Vanity Fair's Abigail Tracy: "California has long held some of the strongest protections for abortion access in the country. But last October, when the Supreme Court first chose not to halt Texas S.B. 8, which bans abortions at six weeks without exception—months before they unraveled federal abortion protections in Dobbs v. Jackson Women's Health Organization—the check engine light came on. "

— " In red California, a deadly fire ignites political rage at liberal government ," by the Los Angeles Times' Hayley Smith: "Some residents acknowledge the role of climate change in California's increasingly destructive firestorms, but their true ire is often focused on decades of government policies they believe have worsened the fire risk and made fighting the destructive McKinney fire inside the Klamath National Forest more difficult."

— " This is what's missing from the fallout over latest S.F. school board scandal ," by the San Francisco Chronicle's Justin Phillips: "Yet in the mad scramble that has become routine when a new scandal breaks in San Francisco — with political factions using the moment to castigate their enemies and defend their allies — there hasn't been enough oxygen given to why [Ann] Hsu's answer was problematic."

— " San Francisco police increase citations for open-air drug users ," by the San Francisco Examiner's Sydney Johnson and Adam Shanks: "The issue highlights the inconsistent strategies employed by The City's police, district attorney and public health service providers in reducing risky drug use and overdoses as well as in dealing with outdoor drug markets in public spaces"

SALTWATER SURVIVAL — " Saltwater toilets, desperate wildlife: Water-starved Catalina Island battles against drought ," by the Los Angeles Times' Hayley Smith: "For Snell and Santa Catalina Island's other 4,000 full-time residents, water is a bit of an obsession. When you live an hourlong ferry ride from Long Beach, a gallon of the stuff can cost six times more than it does "over town" — the islanders' term for the mainland."

— " Wrangling over renewables: Counties push back on Newsom administration usurping local control ," by CalMatters' Julie Cart: "The state can expedite approval of renewable energy projects but rural counties say they already do their part with solar and wind farms. 'We're in the crosshairs, but we don't think we are the right target here,' one rural advocate says."

STAYING IN SCHOOL — " Oakland parents are occupying a school. The district's push to get them out just turned violent ," by the San Francisco Chronicle's Chasity Hale and Carolyn Said: "The physical struggle occurred at one of the 11 schools that the Oakland Unified School District voted to permanently close or merge this year for financial reasons."

FIRES AT HOME — " Stay or go? Some ignore evacuation orders — and die in California's worsening wildfires ," by the Sacramento Bee's Ryan Sabalow and Dave Kasler: "But every fire season, a hardy few will disregard the orders, perhaps figuring they've lived through false alarms and close calls in California's fire country before. Others will believe they can make a stand and save their home."

— " The Housing Enforcer: Meet the activist taking on NIMBYs and housing-shy cities one lawsuit at a time ," by the San Francisco Business Times' Sarah Klearman: "Her argument is short and sweet: More housing, she says, is good for everyone. It balances out supply-demand dynamics, organically lowering rents while chipping away at the state's housing shortage."

— " California's COVID-19 case count tops 10 million. This is how the latest surge is trending ," by the Sacramento Bee's Michael McGough: "The California Department of Public Health in a Friday update reported the cumulative total at 10,024,326 infections. Of those, at least 93,056 have died of COVID-19."

— " Asian American residents sue Calif. county, claiming targeted harassment campaign by officials ," by NBC News' Sakshi Venkatraman: "According to residents, this discrimination has taken the form of routine traffic stops, restricted access to water and liens designed to push Asians off their land. Policies enforced by the county have disproportionately impacted Hmong marijuana farmers, whose neighborhoods have been singled out, the complaint also said."

A message from SEIU California:

BIDEN, HARRIS AND THE HILL

US-CHINA ESCALATION — China cancels talks with U.S. on military issues, climate change over Pelosi's Taiwan visit , by POLITICO's Kelly Hooper: China ramped up its retaliation with military action following Pelosi's visit to Taiwan on Tuesday and Wednesday. It has fired missiles over the island and on Thursday launched military exercises off Taiwan's coast that Beijing said would run through Sunday.

— " There's a lot for Californians in the federal climate bill. Here are the details ," by the San Francisco Chronicle's Kate Galbraith: "Californians, especially moderate- to low-income residents, would find it cheaper to buy new and used electric cars, install solar panels and heat pumps, and make energy efficiency improvements if the bill passes."

SILICON VALLEYLAND

— " California DMV accuses Tesla of falsely advertising Autopilot and Full Self-Driving features ," by the Los Angeles Times' Russ Mitchell: "The agency alleges the electric-car maker misled customers with advertising language on its website describing Autopilot and Full Self-Driving technologies as more capable than they actually are."

HOLLYWOODLAND

— " Judge: Kevin Spacey must pay $30M to 'House of Cards' makers ," by the Associated Press' Andrew Dalton: "[Los Angeles Superior Court Judge Mel Red] Recana wrote that Spacey and his attorneys 'fail to demonstrate that this is even a close case' and 'do not demonstrate that the damages award was so utterly irrational that it amounts to an arbitrary remaking of the parties' contracts.'"

THRIFTING FOR CARS — " Beverly Hills Car Club and its 'Real Housewives' owner sell dream cars. Some spark legal battles ," by the Los Angeles Times' Daniel Miller: "The force behind the company is Alex Manos, 40, a telegenic entrepreneur of the internet age. With a web-focused operation optimized for easy browsing and a social media presence that promotes the dream of classic car ownership, his dealership has differentiated itself in an industry that at times can be overly tradition-bound."

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MIXTAPE

— " 'Fight Asian hate' marchers take to San Francisco streets in rowdy call for justice ," by the San Francisco Chronicle's Sam Whiting.

DISASTER — " 'Dangerous situation': Calif. county south of Tahoe gets 2.2 inches of rain in an hour ," by the SFGate's Amy Graff.

STRIKES — " Tourists find safety after floods close Death Valley roads ," by the Associated Press' Jacques Billeaud and Michael R. Blood.

— " LA man identified as third victim in fatal lightning strike near White House ," by the Los Angeles Daily News' Caitlin Antonios.

— " $4.5 Million Lawsuit Against Fresno Councilmember Will Continue, Judge Rules ," by the GV Wire's David Taub.

— " This Northern California cruise costs at least $6K with stops in Sacramento and Stockton ," by the Sacramento Bee'sNoor Adatia.

BIRTHDAYS

Jo Duchesne of Rep. Ted Lieu's (D-Calif.) office … Marc Ambinder … Dustin Hoffman

SUNDAY: Ron Christie … Wesley Derryberry of Wilson Sonsini Goodrich & Rosati …

SATURDAY: Nextdoor's Jenny Mayfield … Google's Malika Saada Saar … Corey Jacobson of Rep. Ted Lieu's (D-Calif.) office … Daniel J. Jaffe … Susie Sorkin ... Travis Kalanick … J. Oliver Schak … Lindsay Bednar … Nitzan Pelman

A message from SEIU California:

Raising standards in the fast food industry matters for all Californians. Despite working for global corporations that earn billions of dollars in profits, fast food workers are more than twice as likely to live in poverty as other workers in the state. More than two-thirds of California fast-food workers are on safety net programs at a cost to taxpayers of $4 billion a year. AB 257 comes at a critical time as income inequality soars and the disparate impact of the pandemic have put women and workers of color further behind. The choice couldn't be any clearer for Democrats: stand with fast-food workers and working families over corporations. Create a more just and more equitable economy with AB 257.

CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here .

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