Davis Turns Off Taps From Indian Gaming
July 28, 1998
Indian gaming contributions are out of bounds for Democratic gubernatorial candidate Gray Davis, his campaign handlers announced. The move comes at a time when Indian gaming has come under fire from the state capitol.
At issue is whether tribes can operate a type of video slot machines, that is illegal under state law.
The tribes are backing Proposition 5, a ballot measure that would legalize them. But Gov. Pete Wilson is opposing this move and is pushing an agreement under which these machines would be banned.
Meanwhile, a bill is pending in the Senate that would make illegal all campaign contributions from Indian gaming tribes because they are linked to illegal gaming activities, its author, Sen. Quentin Kopp (I-San Francisco) says. And these contributions are getting bigger every day.
In this stormy atmosphere, Davis has decided to "wait and see," his press secretary, Michael Bustamante, says.
"You have to take a step back and reassess your fund-raising strategy," he explains. "Gray's focus is on winning the governor's race."
Opponents of Proposition 5 view Davis' move as a victory.
"This is wonderful news," said Cheryl Schmit of Stand Up for California, a group opposing the initiative. "It means that our group has been successful."
Indian gaming tribes are disappointed, but are careful not to offend either gubernatorial candidate, with whom they will have to negotiate to keep their machines after the November elections.
"Indian tribes have every right to participate in California's electoral process," said Waltona Manion, spokeswoman for the California Nations Indian Gaming Association. "But we know that both candidates would want to put California's interest ahead of those of Nevada."
Manion was alluding to the fact that Nevada casinos have been vocal opponents of the measure.
It's not clear whether Davis actually will take a position on the initiative, Bustamante says. His Republican opponent, Attornet General Dan Lungren, still has to state his opinion on the matter.
Indian gaming tribes have become big players in the federal and state political game during the last election cycles.
Davis, for instance, got $125,000 from the Cabazon Band of Mission Indians, one of the top 10 donors to his campaign.
But two executives of the casino run by the tribe have been indicted in June for allegedly asking casino employees to give $1,000 each to different campaigns, including President Clinton's, and promising to reimburse them out of the casinos coffers.
The tribe denies any wrongdoing.
"We feel that (the investigation) was not handled in the correct manner," said Richard Sackley, the public information officer for the tribe. "These are just allegations right now."
All in all, in the 1997-98 election cycle, tribes have contributed nationwide about $2,860,000 to federal races, in soft money, individual and PAC contributions, $980,000 of which went to Republicans, according to the Center for Responsive Politics, a Washington-based good-government organization. About 27 percent was related to Indian gaming, the center says.
California tribes gave about $180,000, and $140,000 of that went to Democrats.
During the 1995-96 presidential election cycle, tribes from all over the nation gave $6,775,400 -- about $3,094,000 to Republicans.
That same cycle, California tribes gave about $410,000, and $300,000 of that went to Republicans.
Most of the tribes' political efforts in Congress are concentrated on opposing proposals to tax their gaming revenues and fighting amendments to the Indian Gaming Regulatory Act of 1988, which sets guidelines for the operation of Indian casinos, according to a study conducted by the Center for Responsive Politics.
San Diego County tribes are small players in Washington's contributing game and lean Democratic, the center's analysis shows.
Barona has given $1,500 in this election cycle and Sycuan $4,000, all to Democrats.
In 1995-96, Barona contributed $6,000 to Democrats and $250 to Republicans; Sycuan gave $6,000, all of which went to Democrats; and Viejas contributed $23,750, all but $250 to Democrats.
Interestingly enough, Democrats received 87 percent of Indian gaming contributions, and only 47 percent of the non-gaming ones.
There is no comparable study for Indian gaming spending in California races.
But figures compiled by Stand Up for California show Indian tribes have given about $1,128,000 to Senate, Assembly and statewide offices races.
"I think that it's probably safe to say that they are spending more than ever before," said Susan Lyon, a researcher at Common Cause, a Sacramento-based good-government organization that is studying Indian tribes contributions. Lyon said she hopes to come up with a study in September.
Stand Up for California figures also show the tribes targeted the attorney general's race, giving about $530,000 to Sen. Charles Calderon (D-Whittier) and $306,000 to Republican Deputy Attorney General Dave Stirling.
"Tribes look at the A.G.'s office as the official who will be able to negotiate the legalities of a compact," Lyon commented.
Tribes' contributions were important enough to prompt Kopp to design a bill that makes them illegal. Kopp argues that this is money that comes from illegal video slot machines.
Under California law, every gaming device on which the player wages against the house is illegal. Proposition 5 would overturn this law.
But tribes reply that many of their machines operate on the same principle as the California lottery, in which players wage against one another. And slot machines are not their only source of income, they add. In addition, they don't see why they would be deprived of their right to participate to the legislative process.
"We believe this bill is outrageous and is designed to keep Indian voices from being heard," Sackley said. "The Cabazon tribe, like many others, has a lot of other business ventures."
'Tribal governments are responsible," Manion said. "They're committed to observing the law."
Others insist that Indian tribes are small players, compared to wealthier interest groups.
"Everybody talks about Indian tribes becoming contributors," said Nikki Symington, a spokeswoman for the Viejas Group of Mission Indians. "But we're new, small players. I think it would be fair if there wasn't any Nevada money."
Meanwhile, Lungren has lost one of his campaign issues against Davis, but is quick to recover.
"Dan Lungren has never taken money from Indian gaming, card rooms or, for that matter, Nevada casinos," said Bob Brown, a spokesman for Lungren's gubernatorial campaign.
But one of Lungren's friends and advisers is Steve Merksamer, a Sacramento lawyer whose firm works for Circus Circus, a Las Vegas casino that has been fighting the expansion of Indian gaming in California.
Both men deny their relationship influences Lungren's attitude towards gaming.
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