Orange County's best source for local information Wednesday
Jun. 2, 2004
COAST: 73° Forecast Ocean
INLAND: 76° Traffic Surf
SUBSCRIBE TODAY
CUSTOMER SERVICE
OCRegister.com OC Car Finder OC Job Finder OC Real Estate Finder myoc.com OCExcelsior.com
ADVANCED SEARCH
Classifieds
Car | Job | Home | More
> Place an ad
Marketplace
 • Newspaper ads
 • Coupons
 • Register Store
Sections
 E-REGISTER
 The print edition online
 E-REGISTER ARCHIVE
 E-COMMUNITIES
 Weekly newspapers
TODAY'S FRONT PAGE
 HOME PAGE
 REGISTER TOP NEWS
 AT WORK EXTRA
 BUSINESS
 COLUMNS
 COMMENTARY
 EDUCATION
 ENTERTAINMENT
 FOOD & WINE
 HEALTH & FAMILY
 HOME & GARDEN
 INVESTIGATIONS
 LIFE, ETC.
 LOCAL
 MULTIMEDIA
 NATION & WORLD
 OBITUARIES
 REGION & STATE
 SPECIAL FEATURES
 SPORTS
 TRAVEL
 WEATHER
Community news
Noticias en Espaņol
Interactive tools
Discussion boards
Financial tools
Get a map
Get directions
Make this my
home page
Movie times
Place a classified ad
Puzzles & games
Traffic
Yellow pages
Information
About us
Advertise with us
Contact us
Customer service
Register in education
Site feedback
Subscribe today
Media partners
MSNBC
OCExcelsior.com
myOC.com
KPCC
KOCE
COMMENTARY
Sunday, May 30, 2004

Dancing with pols, gaming the system

By STEVEN GREENHUT
Senior editorial writer and columnist,
The Orange County Register
[email protected]

Not that long ago, Indian tribes were widely viewed with sympathy by most Americans, given the long history of federal mistreatment of them and endemic poverty on reservations. They also have been perceived as a people uniquely in touch with the non-material, spiritual things in life.

People will argue whether that image is real or Hollywood buncombe. But few would disagree that these days the tribes' image doesn't exactly fly with the eagle, thanks largely to the political clout they wield because of their immense gambling proceeds.

Think less about dancing with wolves and more about waltzing with any number of California politicians, such as Lt. Gov. Cruz Bustamante, who was ordered to return millions of dollars in illegally contributed Indian gaming and other money for his ill-fated run in the gubernatorial recall.

Now, a battle of gaming initiatives is shaping up for the November ballot, pitting the non-Indian owners of 16 card clubs against Indian gaming interests. Both proposals, which are pending signature verification, reflect the worst aspect of the initiative process - the ability of wealthy participants to craft self-serving measures that wouldn't have a prayer in the Legislature.

Yet I get a chuckle out of the first one, the Fair Share for California Initiative. It is designed to exploit the distaste many Californians rightly feel toward Indian-gaming political power. Ask most legislators in Sacramento (off the record, of course) and they will tell you three interest groups rule the Capitol: public employee unions, trial lawyers and Indian gaming interests. The once-ignored Indian tribes have made it into the top three, a testament to the power of money.

I met with Leo Chu, owner of card clubs in Inglewood and Compton, and Haig Kelegian, owner of clubs in Oceanside, Commerce and Bell Gardens. The two men crafted the Fair Share initiative out of frustration with the special privileges the Indian casinos maintain through their political power.

Chu and Kelegian tell a troubling story of hardball politics. The Indian casinos have been able to largely shut out the competition by getting tax and other privileges for themselves. They've been able to keep the card clubs from offering the games of chance the casinos offer.

Gov. Arnold Schwarzenegger has been trying to force Indian casino owners to pitch in to clean up the California state budget mess. The tribes claim they are separate nations, so they shouldn't have to pay state taxes. I'm never for higher taxes, but if they are separate nations, then they should follow the laws that forbid foreign nations from contributing dollars to American political races.

One of the bills the tribes had tried to push through last year would have given them veto power over development projects near their tribal boundaries. If a developer was proposing new housing or shopping on private land near a reservation, the tribal council could reject it because it interfered with one of their "sacred" sites.

Tribes also are engaged in reservation shopping - seeking sites in non-reservation areas that can be developed as casinos, and could compete with existing card clubs. Last summer, the high desert city of Hesperia gave approval to the Timbisha Shoshone tribe of Death Valley Indians to build a casino in the city - not exactly a reservation. City officials view it as economic development.

Recent news stories detail the bitter disputes within some reservations, as tribal councils expel large numbers of Indians from their tribe. Those being removed argue that the sole reason is to boost the gambling revenues for those who remain in the tribe, given that such revenues are distributed among tribal members. The victims claim there is no fair legal process by which they can assert their rights.

This is a story of greed, political power and a lack of accountability. So I understand what Chu and Kelegian are doing, even though their initiative is cynical. Here's what it will do, according to the summary of the Secretary of State's Office:

"Authorizes governor to renegotiate tribal-state compacts to require that tribes: pay 25 percent of slot machine/gambling device revenues to government fund; comply with multiple state laws; accept state court jurisdiction. Unless all compacted tribes accept terms within 90 days, or if terms determined unlawful, authorizes 16 specified non-tribal racetracks and gambling establishments to operate 30,000 slot machines/gaming devices, paying 33 percent of revenues to fund public safety, regulatory, social programs."

The card-club owners are betting - the odds are overwhelmingly in their favor - that the tribes will not agree to the 25 percent levy or the other conditions, and so the "non-tribal ... gaming establishments" - can you say card clubs - will be allowed to operate slot machines. This initiative is about giving the clubs additional advantages. Note also that the initiative limits its advantages to existing clubs, thus shutting out new competition.

To gain public support, the initiative promises proceeds to the ever-popular public safety programs, even though public safety unions are right up there with Indian casinos in terms of a self-serving special interest that's eating up the treasury.

For their part, Indian tribes are responding with an even-more shameless initiative of their own that would, in essence, grant existing Indian gaming interests 99-year protected monopoly status for their casinos. The tribes would agree to pay a meager 8.9 percent tax on their profits. If both initiatives pass, the one with the highest vote count would go into effect.

The Coalition of Indian Gaming Tribes, which is actively opposing the card-club initiative, has a Web site filled with information about the evils of gambling. Did you know that gambling increases crime and traffic and stretches thin law enforcement budgets?

It's utterly shameless, but entertaining in a way. What's happening, clearly, are two groups using the political process to carve out more favorable financial standing for their gambling enterprises. The truth won't get in the way of this play for financial gain.

I don't begrudge the Indians their newfound wealth. And I don't begrudge the card-club owners trying to secure a level playing field. I have been flummoxed, however, by the sheer size of the gambling industry in California. Who wants to drive to Temecula or Compton to sit in a glorified Holiday Inn and throw their hard-earned money down the hopper? Apparently hundreds of thousands of Californians. P.T. Barnum was right.

As a libertarian I'm supposed to celebrate this garbage. Actually, as a libertarian all I need to do is tolerate it. What I can't tolerate, however, is the close link between gambling dollars and government privileges. Both initiatives only make that situation worse, so both deserve to be rejected overwhelmingly by the California electorate.


CONTACT US: [email protected] or (714) 796-7823
Copyright 2004 The Orange County Register | Privacy policy | User agreement
Freedom communications Freedom Communications, Inc.