Calif. court nixes Prop 5

Proposition 5, the big-money initiative to expand legalized gambling at Indian casinos in California, was struck down today by the California Supreme Court.

The 6-1 ruling said the measure, which has never taken effect, violated a state constitutional ban on Nevada-style casino gambling. The decision also limits California tribes' ability to negotiate an expansion of reservation gambling with Gov. Gray Davis.

The decision didn't come as a surprise to Nevada casino executives, who'd been predicting for months the so-called "Prop 5" was illegal. And it apparently didn't surprise tribal leaders, either, for they have begun circulating another petition to amend the California constitution.

"Given how fast they did it two years ago and how much money they spent, there's reason to believe they'll get enough signatures to qualify for the ballot in March," Mandalay Resort Group executive Mike Sloan said today.

"The tribes were given an opinion many months ago by one of their own attorneys telling them this would happen," said Mirage Resorts spokesman Alan Feldman.

"But we've only seen the tip of the iceberg in terms of the money they can spend to create this industry only for themselves in California. The people of that state haven't been fully and completely informed about what the Indians have in mind in terms of the breadth and scope of gaming in California.

"Not only do they want full-bore casinos," Feldman said, "they want them unlimited in terms of slot machines and table games, and they want them only for themselves. They don't want anybody operating a racetrack or a card club or a church to offer casino gaming."

Proposition 5 was approved by 63 percent of the voters last November after a campaign that cost nearly $100 million, a national record for a ballot measure.

About two-thirds of the money came from tribes who sponsored the initiative. The opposition campaign was largely bankrolled by Nevada casinos, which also funded lawsuits challenging the measure.

The measure, put on hold while the court reviewed the case, legalized a wide range of lucrative, previously banned video gambling terminals and card games on California Indian reservations.

Tribes turned to the ballot after then-Gov. Pete Wilson refused to allow the expansion they sought. The Associated Press contributed to this story.

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