Schwarzenegger rallies opposition to two gambling initiative

MICHELLE MORGANTE, Associated Press Writer With more than half a dozen Indian casinos less than an hour's drive away, Gov. Arnold Schwarzenegger urged a supportive San Diego crowd Thursday to reject two November ballot measures he says would expand gambling and weaken his negotiations with tribes over taxes and accountability. "They want to have unlimited amounts of slot machines. We cannot do that," Schwarzenegger said. "We don't want to turn California into one big gambling casino." Proposition 68 would allow card rooms and horse racetracks to operate 30,000 slot machines unless every gambling tribe agreed to give up 25 percent of its profits. Proponents of the bill ended their campaign for it last week, acknowledging they had little chance of success, but the measure will remain on the Nov. 2 ballot. Proposition 70 would drop limits on gambling on Indian land but require tribes to pay the same corporate tax as other businesses, 8.84 percent of their profits. Schwarzenegger, who campaigned in the 2003 recall election with a pledge to get Indian tribes to pay their "fair share" of revenue to the state, said he has negotiated separate deals with nine tribes and intends to reach deals with dozens of others. "That's what's important. The Indian gaming tribes will have to come to the table and negotiate with me. And I happen to be a very good negotiator," Schwarzenegger told reporters as fans and curious passers-by gazed on from the edge of a restaurant parking lot in the historic Old Town area. He said Proposition 70 doesn't do enough to protect the environment surrounding Indian reservations, guarantee the rights of casino workers and customers, or open tribal accounting books to state auditors. "You're a part of California no matter if you're a sovereign nation or not," he said. But William L. Rukeyser, a spokesman for "70 Yes," said the measure would amend the previous gambling compact to require tribes to conduct off-reservation environmental impact reports and give the state greater authority to verify tribal records. The proposition would in the first five years generate $2 billion more for the state than Schwarzenegger's deals have, he said. "There's a simple solution. There's something in it for both sides," he said. Schwarzenegger's statements indicate "someone is writing lines for him without reference to the facts." Schwarzenegger Thursday debuted a new television advertisement saying the propositions "are from special interests looking for special treatment. Both would cause a massive expansion of casinos across the state. Allow me to negotiate a fair share -- the billions -- from Indian gaming our state deserves." A Field poll released Friday showed that 59 percent of voters opposed Proposition 68, while 20 percent supported it. Proposition 70 was opposed by 43 percent and supported by 32 percent.