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� �-5 <br /> . <br /> Legislative Analyst's Office <br /> _ 7/15/04:8:50 am <br /> FINAL <br /> PROPOSmoN 68 � <br /> TRIBAL GAMING COMPACT RENEGOTIATION. NON-TRIBAL COMMERCIAL <br /> GAMBUNG EXPANSION. REVENUES, TAX EXEMPTIONS. INITIATiVE <br /> CONSTITUTIONAL AMENDMENT AND STATUTE. <br /> BACKGROUND <br /> The California Constitution and state statutes specify the types of legal gambling <br /> that can occur in California. For instance, current law allows wagering on horse races <br /> and certain games in Iicensed card rooms. In addition, Indian tribes with tribal-state <br /> gambling compacts can operate slot machines and certain other casino-style gambling <br /> � in California. <br /> Card Rooms and Horse Racing <br /> ' Cc�rd �toz�s. 'Th� state a�.�r� iLat�-room��o-e��d�t car� g��� �e th� care� �;- <br /> e <br /> r�m a�e�at�r h�s��c� sta�an th�e ou��ome o��e�an� ThE�la�ers�la�y a�a�t +�ac� � <br /> ` other and'pay tfie carct room a"�ee for"the use of the��acilities.�Typicaf�card games` `" ` �''' <br /> include draw poker� 7 card stud, and poker pai �ow Certain�ames—such as twenty ��� ` <br /> pn�—are p�d�t.ibi�c� `I��re �re � tot�� t�f �6 hc��'ts�1 ���wrn� �n #�e �ate� ,�� � <br /> , g�ver�ments �ppr�v� �r� °zcx�zn�. a€� ��1 as �tal�ll�t�ie:h� pf #���at��� tl�e � � <br /> __: ,. ,. <br /> number of tables, and wagering luruts. �Cunent state Iaw limits the expansion of both �' � <br /> the number of card rooms and the size of existing card rooms until January 2010. <br /> Horse Racing. The state issues licenses to racing associations that then lease tracks <br /> for racing events. In California, there are a total of 6 privately owned racetracks, 9 <br /> racing fairs, and 20 simulcast-only facilities. (These latter facilities do not have live <br /> racing; instead, they allow betting on televised races occurring elsewhere in the world.) <br /> Gambiing on indian Land � <br /> Federal law and the State Constitution govem gambling operations on Indian land. <br /> Tribes that enter into a tribal-state gambling compact may operate slot machines and <br /> engage in card games where the operator has a stake in the outcome, such as twenty- <br /> one. Currently, 64 tribes have compacts and operate 53 casinos with a total of more than <br /> 54,000 slot machines. Any new or amended compact must be approved by the <br /> Legislature, the Governor, and the federal government. As sovereign nations, tribes are <br /> largely exempt from state and local taxes and laws, including California environmental <br /> laws. <br /> 1999 Compacts. Most tribes signed their current compacts in 1999. Under these <br /> compacts, a tribe may operate up to two facilities and up to a total of 2,000 slot <br /> machines. In exchange, tribes make some payments to the state which can only be used <br /> for specified purposes (such as far making payments to tribes that either do not operate <br /> � �- <br /> �, ' - S T ^ . '-','�� �'• � ; -�, � <br /> �' :t.:' _ . . ..; �.: e � a,: is'a� •��.�% c i, 3 <br /> � �''� � � �.'.'"� ::; : w. '"�►� � ;: � ,,. .�„ q,, PagE� ] of 6 <br /> �i�.6.Js�: �:r.::,,? �v`:� �: ►: `,: �: •.�w� <br />