Cal-bred News

Proposition 68--Help Wanted

ARCADIA, Calif. (Sept. 17, 2004) -- Election Day, Nov. 2, is just weeks away. The world may be focused on the contest between Bush & Kerry, but the horseracing industry has a much more important battle closer to home – Proposition 68. It’s been a roller coaster ride to date. The highpoint has always been our message: the tribal casinos need to pay their fair share. The low point: opposition from Governor Schwarzenegger. But the voters will decide the issue on November 2. If Proposition 68 is passed, the tribes will have 90 days to agree to contribute 25% of their net win (=gross profit) to the state. Even if Proposition 68 fails we will continue to fight through the courts and the ballot box to win the right to compete with tribal gaming. It’s not about greed. It’s about survival.

Here’s an overview of the Proposition:

The Gaming Revenue Act of 2004 will appear on the November ballot as Proposition 68. The Proposition is about gaming EXCLUSIVITY in the State of California. If approved by the voters, the Indian tribes in CA must agree to pay 25% of their net win, i.e. gross profit, from slot machines to education and public safety and agree to abide by the laws of the state which protect the environment and basic worker’s rights. IF THEY AGREE to those terms, THEY RETAIN THEIR MONOPOLY on gaming; if they do not accept the terms, they keep their current gaming but LOSE THEIR EXCLUSIVITY and 30,000 slot machines are placed at 5 racetracks and 11 card clubs, with a 33% tax going to state and local governments.
If the 5 racetracks and 11 card clubs are awarded slots, 33% of the net win, estimated at nearly $2 billion annually, is paid into the Gaming Revenue Trust Fund and distributed as follows:

2% of net win is paid to the local city, 1% to the local county and 30% is paid to the State Gaming Revenue Trust Fund. Of the 30% paid to the Fund:
•
Each non-gaming tribe shall receive $1.2 million annually.
$3 million awarded to problem gambling programs
50% of the remaining monies are distributed to county offices of education to provide services for abused and neglected children and children in foster care;
35% to local governments on a per capita basis for additional neighborhood police and fire fighters
15% to local governments for additional firefighters.

If the tribes refuse to abide by the provisions of Prop. 68, then 3,000 slots would be authorized at 4 thoroughbred tracks: Santa Anita, Hollywood Park, Bay Meadows and Golden Gate (Los Alamitos is the 5th track). Horsemen will receive 18.5% of the net win, i.e., gross revenue, with 17.75% paid to purses and .75% to Breeders Awards. By comparison, purses in New York will receive 8% from slots; purses in Pennsylvania will receive between 12% and 18%.

In California, revenue for purses will be pooled and distributed among all thoroughbred tracks in the state, including Del Mar, Oak Tree, Fairplex and the Racing Fairs.

Based on moderate projections, it is projected that thoroughbred purses throughout the state would triple.

If you would like to learn more about supporting Proposition 68, contact the CTBA or call the marketing offices at Hollywood Park at 310-419-1549.