EDITORIAL LA Times
Almost without notice, gambling is becoming a huge and minimally
regulated business in California. Indian casino building and expansion
account for most of the increase, but a new law that eases betting on
horse races adds to the total. If gambling interests get their way,
there could be an initiative on the November ballot allowing just about
anyone to open a casino. State politicians, whose campaign coffers are
heavily fed by gambling businesses, need to develop the gumption to
demand a slowdown. Unfortunately, since the tribal compacts will be
subject to renegotiation in early 2003, the tribes will contribute
millions to this year's election campaigns.
The number of slot machines whirring and clinking in the 46 casinos
operated by California Indian tribes has soared from fewer than 19,000
two years ago to at least 40,883 now, a rate of increase indicating
that the reach of Nevada-style gambling will be broader than Gov. Gray
Davis estimated when he signed the original gambling compacts with 61
tribes. One of the problems with Indian gambling in California is lack
of information. How many customers are visiting the mostly rural
casinos, how much are they gambling, how much are they winning and
losing? The tribes have consented to minimal state regulation, such as
licensing of casino employees, but generally decline to release
financial information. They argue that tribal sovereignty limits what
they have to divulge. But secrecy can hide potential consumer rip-offs
and poor management.
Several attempts are underway to establish tribal casinos in urban
areas despite Davis' declared opposition. California voters in 2000
overwhelmingly gave the state's tribes authority to operate casinos.
Most voters, however, believed that the casinos would be restricted to
existing tribal lands. They did not envision the complicated land swaps
that are putting casinos ever closer to city limits.
If all that isn't enough gambling expansion, there's a new law that
allows horse race fans to place bets from their homes, by telephone or
Internet, on races both in California and elsewhere. Everyone can be a
bookie! The bill was pushed by California race tracks and signed into
law by Davis.
Meanwhile, an organization called the DeVille Group says it is
conducting a $2-million petition drive to put an initiative on the
statewide ballot to allow full-on Nevada-style casinos anywhere in
California. The group, which lists a Palm Springs address, is headed by
a former politician from Maine and a spokesman in Palm Springs. Not
much disclosure is required at the start of the ballot petition
process, but the proposal's backers clearly want more casinos with less
regulation in California cities. Californians who don't favor nearly
unlimited casino gambling across the state should refuse to sign the
petition. Some issues don't deserve to make it to a vote. Gambling has
become very big business in California and threatens to become much
bigger, Davis and the Legislative should tell us where they plan to
draw the line.