Indians Raise $7.3 Million to Push Casino Measure

SACRAMENTO —  Indian tribes have raised $7.3 million to win passage of a March ballot measure granting them a monopoly on casino gambling in California, while Nevada gambling interests that opposed a similar measure in 1998 say they intend to stay out of the fray, campaign finance reports filed Thursday show.

The tribes raised their $7.3 million by Dec. 31, and spent $5.8 million. The bulk of it went to television ads in favor of Proposition 1-A,which began airing last month.

Opponents have raised virtually nothing, and reported a mere $1,800 in the bank. The campaign consultant attempting to lead the anti-gambling effort says he has virtually no hope of raising money. Without money, he said, he cannot defeat Proposition 1-A.

“I don’t think I can win it,” said Sacramento campaign consultant Leo McElroy, who is trying to organize opposition to the March 7 ballot measure.

The largest contributor to the yes campaign is the Pechanga tribe based in Temecula, whose chairman, Mark Macarro, is featured in the television ads.

“I don’t think the tribes want to take anything for granted,” Waltona Manion, spokeswoman for the Yes on Proposition 1-A campaign, said, adding that Indians have no assurance that Las Vegas interests won’t get involved late in the campaign. “This is still a fight for their economic survival.”

But so far, the campaign is taking on a tone far different from the record-shattering 1998 war over Proposition 5. That fight dominated television airwaves. Tribes spent $63 million and opponents, led by Nevada casino corporations, shelled out $25 million in their losing effort.

Voters overwhelmingly approved the measure. But the California Supreme Court declared it unconstitutional last summer. The court held that Proposition 5, which sought to create a statute permitting unlimited gambling on tribal land, violated a state constitutional provision barring Nevada-style casinos in California.

After the high court ruled, Gov. Gray Davis and the tribes undertook negotiations that led to creation of Proposition 1-A. The proposition seeks to amend the California Constitution to grant tribes exclusive rights to operate Nevada-style slot machines and card games.

If voters approve the measure, compacts negotiated by Davis and the tribes last September would take effect permitting Indians to operate slot machines, card games such as blackjack and pai gow, and possibly satellite wagering on horse races.

McElroy said he would accept money from Nevada casino interests--even if he believes some of his allies, including political conservatives and gambling foes, might protest it. However, he said he holds little hope that Las Vegas interests will get involved.

“Las Vegas knows we’re here,” McElroy said. “We’ve put the word out. I understand their reluctance. They got the living hell kicked out of them the last time. . . . There is no economic interest that is gored by this proposition that will put in money against it.”

Alan Feldman, vice president of Mirage Resorts, owner of four of Las Vegas’ largest casinos, said Thursday he is certain that his firm has no plans to finance the opposition campaign, and he doubts that other Nevada casino companies will get involved.

“There’s no reason to oppose Prop. 1-A,” Feldman said. “The governor has negotiated with the tribes in the state, and we wish them well.”

In fact, some Nevada companies may attempt to profit from California tribal casinos--offering management or marketing expertise, or selling them slot machines.

They have been precluded from getting involved because they risk losing their Nevada gambling licenses, given that the tribal casinos now are operating without state and federal approval.

“You’re looking at superior firepower,” Mike Sloan, spokesman for Mandalay Resorts in Las Vegas, said, explaining Nevada’s decision not to play. “As public companies that pay taxes on the money we have, we can’t compete with the money the tribes had. They won the last election fair and square. The people in California have decided what they want to do.”

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Morain reported from Sacramento and Gorman from Riverside.