Some tribal casinos face potential shutdown of the bulk of their business

They faced a setback in the short run after the state Supreme Court on Monday struck down a measure that voters approved in November legalizing Indian gambling. The decision clears the way for federal agents to shut down the bulk of business at some of the state's largest tribal casinos.

"We'll do whatever it takes, we'll spend whatever we have to spend to keep the right to govern ourselves," said Anthony Pico, chairman of the Viejas Band of Kumeyaay Indians.

Proposition 5 would have allowed 40 tribes with casinos to keep using the popular and lucrative video slot machines deemed illegal by federal prosecutors. Tribal officials claimed the devices, which they estimate generate 70 percent of the revenue at Indian casinos, were legal lottery-style gambling machines.

The measure also would have set the stage for more of California's 107 tribes to open casinos and allowed other video gambling terminals and card games.

In their 6-1 ruling, state justices said the measure violates a section of the state Constitution that forbids "casinos of the type currently operating in Nevada and New Jersey" - a phrase that was undefined until Monday.

The decision means tribes in three Southern California counties, which run some of the state's largest casinos, could lose their video slot machines due to a federal court order in Los Angeles. The order had been suspended pending a decision on the gambling measure, but now could go into effect in about 1 1/2 months, said Thom Mrozek, spokesman for the Los Angeles U.S. attorney's office.

Tribes in other parts of California previously reached agreements with federal prosecutors over the machines.

At the two-story adobe-styled Viejas casino about 30 miles east of San Diego, word of the state court decision rippled through the crowd of hundreds of gamblers.

"It's not just a legal question. It's a human question," said Lew Jones, head of security at the Viejas Casino & Turf Club. "There's about 2,000 people working here. A lot of them would be on welfare if they weren't working here."

"They're saying that they don't care what we want? If they turn it back into a cardroom that would be wrong," said Teresa Glareon, a retired accountant taking a break from a video card game. "This casino has done a lot for the community. It's not a Vegas-style casino. It's more of a family gathering place."

"What the people vote for that's the way it should be," said George Piszczek, a regular patron who is a retired bookstore employee.

The measure was approved by 63 percent of the voters in November, after both sides injected nearly $100 million into the campaign, setting a national record for a ballot measure.

The initiative was put on hold while the court reviewed the case after two legal challenges by a labor union and a group of homeowners and businesses backed by Nevada casinos.

Both sides expect another formidable battle as they begin a battle over a March 2000 ballot initiative on the same issue. This time, however, the tribes want voters to approve a constitutional amendment instead of a statute change as they did in November.

"Today is a setback for them, but we should be realistic. They have shown time and time again that they're able to shower the political process with vast sums of money," Jim Mulhall of the Nevada Resort Association "They are a very determined group."

Tribal leaders vowed to pump as much money as necessary into the March 2000 campaign. Anticipating an unfavorable court decision, they already began collecting the 670,000 signatures that they need by mid-September for a measure seeking a constitutional amendment to allow video slot machines in Indian casinos.

An appeal to the U.S. Supreme Court likely would be fruitless because the state court is the highest authority on California law.

Gambling supporters expressed hope that tribes could still negotiate a favorable gambling compact with Gov. Gray Davis, who issued a statement Monday saying he would "work diligently to find a constitutionally acceptable means of implementing the people's expressed will."

"In addition to the benefits to the tribes themselves, I am mindful of the fact that some 16,000 Californians, currently employed by Indian gaming, may lose their source of employment if we cannot respond to this challenge," Davis said.

Gambling compacts are required under a 1988 act by Congress that allows tribal gambling, but most of California's tribes don't have compacts because they said the previous governor, Pete Wilson, refused to negotiate with them.

Employees, though apprehensive about the possibility of losing their jobs, were optimistic that tribes will eventually win the right to run the type of casinos they want on their land.

"I'm disappointed. It unfortunately, too often when the people speak the attorneys, the judges, the special interest groups get in the way," said Jones, a retired sheriff's deputy. "We'll continue the battle. We'll win it eventually. The people are on our side. Eventually, we'll win, if for no other reason."

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