Gambling will continue to boom in California and rancor over the issue is sure to rise, despite voters' overwhelming rejection Tuesday of two initiatives that would have fueled rapid casino growth, consultants, casino executives and others said Wednesday.
Representatives of card clubs and horse tracks, which tried to gain slot machines by sponsoring Proposition 68, vowed to press their agenda, even though they spent $27 million on the failed measure. Proposition 68 captured a mere 16.3% of the vote.
And a handful of Southern California Indian tribes, hoping to enlarge their 2,000-slot machine casinos, also were unbowed, even though their measure, Proposition 70, attracted only 23.9% of voters. The tribes, led by the Agua Caliente Band of Cahuilla Indians, shelled out $30.6 million for the campaign.
"We know [card rooms and tracks] are going to revisit the issue, and we'll revisit it, too," said Deron Marquez, chairman of the San Manuel Band of Mission Indians, one of the main funders of Proposition 70. The initiative would have allowed tribes unlimited expansion of casinos on their reservations.
Meanwhile, construction is underway on half a dozen new and enlarged casinos -- and more is in the offing.
Gov. Arnold Schwarzenegger, after making good on his promise to "demolish" Propositions 68 and 70, said Wednesday that he is negotiating with five Native American tribes that want to enter the casino business or expand existing operations. In his campaign against 68 and 70, Schwarzenegger said he alone should negotiate with tribes over their gambling businesses.
"We are going to negotiate with the Indian gaming tribes, but we're going to do it the right way," Schwarzenegger said at a post-election news conference.
The Republican governor has sought up to 25% of tribes' gambling revenue. In exchange, he would permit the tribes to expand beyond the current maximum of 2,000 slot machines and maintain exclusive rights to operate Nevada-style gambling in California.
He also requires that tribes agree to other conditions aimed at protecting the environment, casino workers and customers. Several Native American bands, seeing casinos as their way to wealth, are prepared to make such concessions.
"The Schwarzenegger administration has not skipped a beat," said attorney Rob Rosette, who represents three tribes engaged in talks with the administration and other tribes that hope to get into the casino business.
