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BACKGROUND FOR
PROPOSITION 1A AND PROPOSITION 29

There are two propositions that deal with gambling on Indian tribal lands. Before the individual propositions are presented, here is some background information for both measures.

California Gambling

California has a history of discouraging casino gambling. When the State Lottery was approved in the 1980's, a specific prohibition against Nevada- and New Jersey-type casinos was put in the state Constitution. The phrase is not defined. The constitution also forbids any other lottery. It does allow horse racing with betting, and charitable bingo games. The statutory law of the state specifically prohibits slot machines and similar gambling devices. It does allow card rooms to offer games if the card room has no stake in the outcome.

Indian Tribal Gambling

Gambling activities on Indian lands fall under the federal Indian Gaming Regulatory Act (IGRA) of 1988. This act divides gambling into three classes:

  • Class I - social games and traditional/ceremonial games; no restriction
  • Class II - bingo and various card games where the payout is from a player's pool: games in which the house has a stake in the outcome are explicitly excluded from this category. Only those games permitted in other parts of the state are permitted to the tribes.
  • Class III - all other gambling, such as slot machines, almost all video or electronic games, banked card games (including twenty-one and baccarat), lotteries, horse race wagering, and craps.

-- Compacts between the tribe and the state are required if these activities are to be engaged in on tribal lands. The federal government must approve these compacts. Regulatory responsibilities, licensing requirements, and guidelines for operation of casinos may also be established in the compacts.

Indian Tribal Gambling in California

At the present time, about 40 of some 100 Indian rancherias/reservations in California are engaged in gambling operations. However, casinos with Class III gambling run by the Indian tribes are liable to federal shutdown unless tribal-state compacts are completed.

In November 1998, the voters approved Proposition 5 providing for various types of gambling on Indian lands in California. The Proposition provided a model compact between Indian tribes and the state. It required the Governor to sign such a compact whenever a tribe so requested.

Proposition 5 amended statutory law, but did not amend the state constitution. In August 1999, the State Supreme Court found that Proposition 5 compacts would allow Nevada- and New Jersey-type casinos. Since these are expressly prohibited by the state constitution, Proposition 5 was declared unconstitutional.

In April of 1998, prior to the passage of Proposition 5, the Pala Compacts had been arranged between the Governor and 11 tribes. Tribes that supported Proposition 5 found these compacts too restrictive. A law was passed in the summer of 1998 to ratify the Pala Compacts, but when a referendum on that law, Proposition 29, qualified for the March 2000 ballot, these compacts were put on hold.

Proposition 1A is a proposed state constitutional amendment that would override the present constitutional restrictions and authorize several types of Class III gambling on Indian tribal land, subject to tribal-state compacts that are approved by the federal government.

Recent negotiations with 57 tribes have led to newer compacts that were approved by the Legislature and the Governor in September 1999. These newer compacts can become valid only if Proposition 1A is approved by the voters. They will replace all former compacts, and the signers include all 11 signers of the Pala compacts.


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Last updated: January 24, 2000
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