August 12, 2026

Questions and answers on Indian gambling

The California Supreme Court has invalidated Proposition 5, an initiative that sought to expand legalized gambling at Indian casinos in the state. Questions and answers about the issue:

Q: What is Proposition 5?

A: Proposition 5, approved by 63 percent of California voters in November 1998, would have allowed an unlimited number of video slot machines at tribal casinos and legalized card games like poker and blackjack already available on reservations, despite federal threats to shut the slot machines down. Under the measure, tribes could submit a gambling agreement to the governor that would receive automatic state approval within 30 days, regardless of whether the governor signed it. It would have allowed tribes to begin offering gambling 45 days later unless the U.S. interior secretary objected. The state Supreme Court temporarily blocked enforcement in December, before any agreements could take effect, and issued its final ruling on Monday.

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Q: Why was there a constitutional question about Proposition 5?

A: In 1984, California voters amended the state constitution to allow a lottery, but at the same time barred legalization of the type of casino gambling operating in Las Vegas and Atlantic City, N.J.

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Q: What was the Supreme Court's reason for overturning Proposition 5?

A: The court said the proposition sought to authorize the type of casinos expressly prohibited by the 1984 constitutional amendment. The proposition was invalid because it was a purely statutory measure, one that did not amend the constitution. The court said that in a conflict between statutory law and constitutional law, the constitution must prevail.

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Q: What kinds of gambling are illegal under the ruling?

A: Slot machines and "banked" games, those in which the house pays off winners and collects from losers.

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Q: Will any games be shut down because of the ruling?

A: Thousands of video slot machines are expected to be shut down at Indian casinos in Southern California in about 45 days. A Los Angeles federal judge issued a shutdown order in October 1998 but it was temporarily stayed by the 9th U.S. Circuit Court of Appeals. After an agreement between the parties, the appeals court said that if the California Supreme Court found the proposition invalid, it would let the order go into effect. The casinos are expected to voluntarily comply.

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Q: What will Proposition 5's backers do now?

A: Indian gaming interests are circulating petitions to qualify an initiative for the March 2000 ballot that would amend the state constitution to authorize an expansion of reservation gambling.

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