Card rooms challenge Indian gaming measure

Michelle DeArmond

Wednesday, April 26, 2000 | 2:26 a.m.

LOS ANGELES - Card club owners afraid their businesses will be crippled by the expansion of tribal casinos have asked Interior Secretary Bruce Babbitt to reject gambling compacts California tribes signed with the state.

Four Northern California clubs and two charitable groups recently sent a letter to Babbitt making the request, arguing the agreement violated both the U.S. Constitution and the Indian Gaming Regulatory Act by giving the tribes preferential treatment. The move is seen as a possible precursor to a lawsuit challenging Proposition 1A.

"These entities believe, with ample justification, that their business and charitable operations will be seriously harmed or even destroyed by Indian casino competition," Washington, D.C., attorney James Hamilton wrote on the hand-delivered letter on behalf of the card clubs and charitable groups that operate bingo.

The constitutional amendment was approved by voters in March, paving the way for ratification of the compacts already signed by Gov. Gray Davis and 58 California tribes giving exclusive rights to operate Nevada-style slot machines and banked card games.

Tribal leaders and the Interior Department rejected the card rooms' arguments, noting that tribes are governmental bodies, not special interest or racial groups.

Rex Hackler, a spokesman for the Bureau of Indian Affairs, rejected the constitutional argument Tuesday, saying it has been made repeatedly throughout history and has "never held any water. I don't expect it to start holding water now.

"They are recognized as governments in the Constitution of the United States, and it's on that basis that their rights are established," he said.

Michael Franchetti, a spokesman for the four Northern California card clubs, said the owners are concerned about the possibility of a landless tribe getting property near the card clubs and essentially putting the clubs out of business.

The tribal-state gambling compacts and Proposition 1A are in violation of IGRA, he said, and give the tribes an unfair competitive edge. IGRA states that tribes can only operate types of games already permitted by state law.

The card clubs and charitable groups include Artichoke Joe's in San Bruno, the California Grand Casino in Pacheco, Lucky Chances in Colma, The Oaks Card Club in Emeryville, the Fairfield Youth Foundation and Sacramento Consolidated Charities.

The Interior Department has until May 6 to approve or reject the state-tribal compacts. Kevin Gover, assistant secretary for Indian affairs, is reviewing the compacts now, Hackler said. If the compacts are approved or if the Interior Department does nothing, which will put them into law anyway, the clubs are prepared to go to court, Franchetti said.

Tribal Chairman Richard Milanovich of the Agua Caliente Indians in Palm Springs said the voters have made their support for tribal gambling clear, while surveys have shown residents don't favor allowing card clubs or anyone else to expand the types of gambling they offer.

He predicted the card clubs won't pursue a lawsuit and will get their concerns addressed either by state or federal lawmakers. In the meantime, though, the clubs are throwing around old and invalid arguments, he said.

"I think they're using a shotgun approach. They're throwing anything. Hopefully something will stick to the walls, like sloppy tomatoes."

Other California card clubs outside of the four who sent the letter also are gearing up for a fight. The California Gaming Association, which represents the clubs, recently met and discussed how to remain competitive.

"We feel we're being pushed into a corner, and we're looking for support from the governor to give us possibly some of the games that the reservations are playing right now so we can continue our business," said Bob Moyer, part-owner of Oceans Eleven Casino in Oceanside.

"I know nobody wants to go into a lawsuit. We would like to coexist with the reservations, but we'd like some equality."

The clubs have taken some flak for their position, with the California Gaming Cities Coalition voting unanimously last week to oppose card clubs' efforts to expand their gambling operations.

The coalition represents cities that are home to card clubs and thus have some authority over those businesses, said Rick Taylor, coalition spokesman. Coalition members hope the card clubs would want to stay in the favor of the coalition members.