Page 17 - November 2003 • Southern California Gaming Guide

SOUTHERN CALIFORNIA GAMING GUIDE
California Tribal Gaming—Separating Fact From Fiction
...Continued from page 14.
It also required states to permit “Class III” gaming (especially Las Vegas-style slot machines) by negotiating compacts with interested tribes.
In anticipation, California’s tribes began to upgrade their bingo halls, but then Governor Pete Wilson refused to negotiate with them in good faith. He tried divide-and- conquer tactics, signing onerous compacts with smaller tribes that couldn’t wait for better deals.
Propositions 5 and 1A
With the state stonewalling real negotiations, the Indians decided to take their case to the people. In 1998, they put Proposition 5 on the ballot to safeguard their right to gaming. The proposition passed 62% to 38% despite tough Las Vegas opposition.
With gaming’s popularity proved, newly elected Governor Gray Davis was more willing to negotiate than Wilson. But the California Supreme Court declared Proposition 5 unconstitutional, casting a shadow over the talks. Knowing Indians could rally public support, Davis nally agreed to 20-year compacts in September 1999.
These agreements permitted gaming tribes to operate “banked” games such as blackjack and up to 2,000 slot machines each. In return, the tribes would contribute more than $100 million to mitigate local impacts and assist non-gaming tribes. There was one catch: Voters
had to approve another ballot measure, Proposition 1A, to make Indian gaming legal. The tribes again asked the public for help. In April 2000, Proposition 1A passed by a bigger margin than Proposition 5.
“Now Arnold Schwarzenegger must govern the state. Despite all his rhetoric, he can’t force tribes to renegotiate their compacts. He’s hinted at a compromise: more slots for greater revenue sharing. Whether the tribes will accept such aproposalremainstobeseen.”
Success Fuels Backlash
Since then, Indian gaming has enjoyed unprecedented growth. While the rest of California’s economy slumped, tribes were the state’s only employer to register a double-digit gain in jobs during the year ending September 2002.
This success has fueled a growing backlash. Some see Indians as too rich and powerful. Time magazine and
The Wall Street Journal have led the criticism, repeating false and misleading claims. As California’s budget shortfall spiraled out of control, Gov. Davis tried to tap the tribes for funds. He demanded $1.5 billion, then $680 million, without consulting them.
Unhappy with Davis’s miscues, the public opted to recall him. Arnold Schwarzenegger joined the campaign and fanned the ames against gaming tribes. He successfully painted California’s gaming tribes as a special interest and vowed to make them pay their
“fair share.”
Judgment Day
Now Arnold Schwarzenegger must govern the state. Despite all his rhetoric, he can’t force tribes to renegotiate their compacts. He’s hinted at a compromise: more slots for greater revenue sharing. Whether the tribes will accept such a proposal remains to be seen.
California’s Indians have come a long way since Juan Rodriguez Cabrillo landed on their shores in 1542. Once almost wiped out by disease and warfare, they’re regaining their pride and prosperity. Gaming has begun to correct past injustices and make their
future bright.
Rob Schmidt is a writer for PECHANGA.net, Indian Gaming Business, and other publications.
NOVEMBER 2003 Page 17