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California Initiative Allows Slots in Tracks, Card Rooms

SACRAMENTO, California – As reported by the LA Times: "In a move that could break Indian tribes' monopoly on Nevada-style gambling in California, corporations that own major horse-racing tracks and card rooms are preparing an initiative aimed at next November's ballot to allow them to operate slot machines.

"Some backers of the initiative have connections to Gov. Arnold Schwarzenegger, who has offered no position on the proposal.

"The possibility that such a measure would make it to the ballot could add to pressure on tribes to comply with Schwarzenegger's view that they should increase payments to the state.

"…If the measure went before voters and they approved it, it could open the way for as many as 30,000 slot machines to be split among five privately owned racetracks and 11 card rooms. California Indians operate 54 casinos with 54,000 slot machines, and can expand under current compacts with the state to 61,000 machines.

"If backers of the initiative succeeded, slot machines would be readily accessible in urban areas, where most of California's population lives. Indian casinos generally are in less-developed regions.

"… The proposition would probably receive financial backing from corporations that could benefit from it, including those that own the Hollywood Park, Los Alamitos and Santa Anita racetracks, along with two racetracks in the Bay Area and several card rooms, including the California Commerce Club near Los Angeles.

"…Several other sources said the proposition was being aimed at the ballot in November 2004.

"…The California Constitution grants Native Americans the exclusive privilege to operate Nevada-style gambling on their reservations. The initiative would not directly open the way for slot machines at the major card rooms and racetracks.

"Rather, it would give tribes and Schwarzenegger 90 days to renegotiate key details of the compacts negotiated by former Gov. Gray Davis and tribes in 1999 — and would dictate key terms…"

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