68 Slot Machines
Initiative / Constitutional Amendment

 

 

The way it is now:

California only allows slot machines on Indian lands. The state has gaming agreements with about 70 Indian tribes. Most of these agreements allow only 2,000 slot machines per tribe. In 2004, nine tribes made new agreements that let them have more slot machines. In return, they are making payments that could bring hundreds of millions of dollars each year into the state’s General Fund. More tribes are expected to ask for new agreements.
 

What Prop 68 would do:

Keep slot machines just on Indian lands if the tribes with slot machines agree to pay 25% of what they take in to a new special fund. If all of these tribes do not agree, then 5 racetracks and 11 card rooms not on Indian lands would be allowed to operate 30,000 slot machines. They would pay 30% of what they take in on slot machines to the new fund plus 3% more to local governments.
 

Effect on government spending:

Prop 68 would provide over $1 billion each year for a new special fund, whether from the tribes or from the card rooms and racetracks. This special fund would increase local spending for abused or foster children and add police officers and firefighters. There could also be a loss of hundreds of millions of dollars to the state’s General Fund by undoing the recent agreements with nine tribes.
 

argument forArguments for
Prop 68:

argument againstArguments against
Prop 68:

  • It is only fair that part of the billions earned by Indian casinos go to government in return for having the only slot machines.

  • Other states make Indian casinos pay a 25% “fair share” in return for being the only ones who can have slot machines.

website

  • It is unlikely that all tribes will agree to Prop 68. So card rooms and racetracks could run 16 casinos in urban areas.

  • This could undo recent agreements that are helping with the state’s budget problems. Instead, Prop 68 money is set aside in a special fund.

website