SEARCH NEWS:

 

Calif. Gambling Initiatives Compete on November Ballot

"Propositions 68 and 70 will undercut or wipe out the deals the Republican governor signed this summer with 10 tribes, who will pay a higher share of their revenues to the state in exchange for expanded gambling rights.

"The campaigns mark a renewed battle over gambling rights and the first gambling-related issues on the ballot since March 2000, when voters passed a ballot measure that amended the state's constitution to permit tribes to operate casinos with slot machines on their reservations. This time, another group also wants to operate slot machines, the most lucrative game in any casino.

"Proposition 68 would give tribes a bitter ultimatum: Either pay 25 percent of slot machine revenues to local governments or 16 card rooms and race tracks in six counties would be allowed to operate 30,000 slot machines. In return, the tracks and card rooms would pay 33 percent of their revenues to local governments to pay for public safety and services for at-risk children.

"Proposition 70, which is being pushed by a group of casino-operating tribes, would transform tribal casinos into full-fledged Las Vegas-style casinos.

"The initiative requires tribes to contribute 8.84 percent -- the tax rate for California corporations -- of their casino revenues to the state if they maintain their slot machine monopoly. Tribes would then be allowed to operate an unlimited number of slot machines over the current 2,000-per-tribe limit. They could also operate games now banned in the state, including roulette and craps.

"...Schwarzenegger campaign aides contend that if both measures are approved but Proposition 68 gets more votes the nonconflicting provisions of the two measures would take effect. If Proposition 70 gets more votes only its provisions would prevail, but 68 requires the courts to 'harmonize' the two proposals' nonconflicting language..."

< Gaming News