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Consultant Leaves California Card Club Campaign

7 July 2004

SACRAMENTO, California – As reported by the San Diego Union-Tribune: "Gov. Arnold Schwarzenegger's opposition is starting to take a toll on a November ballot measure that could deliver slot machines to the state's big card clubs and racetracks.

"Prominent media consultant Don Sipple, citing his allegiance to the governor, has left the campaign, and another high-profile strategist close to Schwarzenegger recently re-examined his role in the effort.

"…Sixteen of the state's biggest card clubs and racetracks have spent nearly $12 million on the ballot measure, which would give them 30,000 slots if California's more than 50 gambling tribes refuse to comply with terms most would consider intolerable.

"The initiative, Proposition 68, will appear on the November ballot just ahead of another gambling measure, Proposition 70. Sponsored by the Agua Caliente band of Palm Springs, Proposition 70 would offer unlimited gaming to tribes that agree to pay the state's 8.84 percent corporate income tax rate.

"…The card clubs appeared to have an inside channel to Schwarzenegger when they launched their initiative with Gorton and Sipple on board, along with Democratic consultant David Townsend.

"…When the governor announced his opposition, Sipple said he felt obliged to leave the campaign…"

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