Court Refuses to Block Vote on Slots Initiative

A state appellate court Tuesday rejected Indian tribes’ request that it block a statewide vote on a ballot initiative that would threaten the tribes’ monopoly on slot machines in California.

The state 2nd District Court of Appeal in Los Angeles declined to consider challenges to the initiative that had been brought separately by the Agua Caliente Band of Cahuilla Indians and a coalition of other tribes that own casinos in California. The proposed initiative is sponsored by 11 card clubs and five horse racetracks, which will receive slot machines if the measure qualifies for the ballot and voters approve it.

Courts rarely strike down initiatives before they go to a vote. But Santa Monica attorney Frederic Woocher, who represents the Agua Caliente, owners of two casinos in and near Palm Springs, said he was surprised at the rejection.

“I thought it was a compelling case for pre-election review,” Woocher said, adding that his client may appeal to the state Supreme Court, bring a suit in Superior Court or drop the case until after the election.

“We’ve maintained all along that the initiative would withstand legal scrutiny and we’re glad that the court has agreed,” said Greg Larsen, a spokesman for the card rooms and racetracks backing the measure.

The tribes argued that the initiative would violate state constitutional provisions that prohibit ballot measures from addressing more than one subject and that forbid specific businesses from benefiting directly from initiatives they sponsor.

The initiative says that tribes will lose their monopoly unless they agree to a series of concessions, including paying the state 25% of their “net win,” or gambling profits after paying customers who win. If the tribes balked, the tracks and card rooms would receive rights to 30,000 slot machines. Those businesses would pay the state 33% of their winnings, or $1 billion or more.

Backers of the initiative submitted 1.1 million signatures to elections officials last month in hope of putting the measure to a vote in November. Agua Caliente is pushing a competing initiative that would allow unlimited casino expansion on tribal land, and would require that tribes pay 8.84% of their net income to the state.

Woocher filed his case directly with the appellate court. A separate coalition of tribes turned to the state Supreme Court, which sent the matter down to the appellate court.