Tribe Antes Up for Gambling Initiative

An Indian tribe that owns one of the most successful casinos in California has donated $10 million to the campaign for a November ballot initiative that would wrest control of Indian gambling expansion from Gov. Arnold Schwarzenegger.

The donation, one of the largest single contributions to a political campaign, came from the San Manuel Band of Mission Indians one week after several tribes that operate major casinos endorsed the measure, Proposition 70. Schwarzenegger has vowed to defeat the measure.

“We understand that to fully fund a campaign in California, it takes a lot of capital,” said Deron Marquez, chairman of the San Manuel band.

The contribution helps ensure that Schwarzenegger will have to raise millions to counter the tribes’ campaign.

The San Manuel “are one of a number of tribes that have made major financial commitments that we expect to be receiving in the next few weeks,” said Gene Raper, consultant to the Yes on Proposition 70 campaign.

The initiative, pushed by the Agua Caliente Band of Cahuilla Indians, would give tribes the freedom to establish casinos on their reservations and design their games of chance. In exchange, the tribes would pay 8.84% of their net revenue to the state.

Schwarzenegger signed pacts last month with five other tribes granting them the right to unlimited slot machines. In return, the tribes promised the state a one-time $1-billion payment to help balance California’s budget, plus smaller annual payments thereafter. Proposition 70 would invalidate those pacts.

Other tribes that had initially shown interest in negotiating with the governor objected to some of the restrictions contained in the new pacts. One permits union organizing at casinos; another gives local officials more authority over casino expansion. Neither provision is included in Proposition 70.

If the five tribes that signed deals with Schwarzenegger “are willing to give up their sovereignty, that is their choice,” Marquez said.