SACRAMENTO, California – As reported by the San Francisco Chronicle: "…More than six months before election day, racetrack and card club owners like [Larry] Flynt are already fighting with Indian tribes over who will feed the state's seemingly insatiable appetite for slot machines, and Gov. Arnold Schwarzenegger is working quietly to backfill the state's gaping budget deficit with an infusion of casino cash.
"Schwarzenegger, a proven force in initiative campaigns, has expressed opposition to one of two gaming measures, which is backed by the Agua Caliente Band of Cahuilla Indians of Palm Springs. It seeks to allow that tribe and others to greatly expand gaming operations -- adding poker, keno and more slot machines -- in exchange for paying the state's roughly 9 percent revenue tax on corporations.
"But the governor has remained silent on the other, more controversial initiative, which asks all of California's 53 Indian tribes engaged in gaming to collectively agree to pay 25 percent of their revenue to the state.
"If they don't, up to 30,000 slot machines could be installed at five racetracks and 11 card clubs -- many in urban areas and one of which, the Hustler Casino in Gardena, is owned by Flynt. Owners would then pay 33 percent of their slot profits into a trust fund to benefit local public safety agencies.
"…In all, groups are likely to spend more than $100 million battling each other, said Gene Raper, a consultant to the Agua Caliente Indians.
"While the tribe has yet to begin to push for its initiative, the battle for and against the rival measure supported by card clubs is raging already.
"A television-commercial blitz launched last week by the card club- financed Fair Share for California uses a Monopoly board to emphasize the exclusive casino gaming rights of Indian tribes in California. But the ads make no mention of the slot machines the initiative's passage would guarantee its backers.
"…Two lawsuits filed last week allege that the card-club measure is overly broad and unconstitutional, and seek to have it disqualified from the ballot…"
Casino City Times
"Schwarzenegger, a proven force in initiative campaigns, has expressed opposition to one of two gaming measures, which is backed by the Agua Caliente Band of Cahuilla Indians of Palm Springs. It seeks to allow that tribe and others to greatly expand gaming operations -- adding poker, keno and more slot machines -- in exchange for paying the state's roughly 9 percent revenue tax on corporations.
"But the governor has remained silent on the other, more controversial initiative, which asks all of California's 53 Indian tribes engaged in gaming to collectively agree to pay 25 percent of their revenue to the state.
"If they don't, up to 30,000 slot machines could be installed at five racetracks and 11 card clubs -- many in urban areas and one of which, the Hustler Casino in Gardena, is owned by Flynt. Owners would then pay 33 percent of their slot profits into a trust fund to benefit local public safety agencies.
"…In all, groups are likely to spend more than $100 million battling each other, said Gene Raper, a consultant to the Agua Caliente Indians.
"While the tribe has yet to begin to push for its initiative, the battle for and against the rival measure supported by card clubs is raging already.
"A television-commercial blitz launched last week by the card club- financed Fair Share for California uses a Monopoly board to emphasize the exclusive casino gaming rights of Indian tribes in California. But the ads make no mention of the slot machines the initiative's passage would guarantee its backers.
"…Two lawsuits filed last week allege that the card-club measure is overly broad and unconstitutional, and seek to have it disqualified from the ballot…"
Casino City Times
