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Arizona Fair Gaming, Proposition 201 (2002)

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Proposition 201, also known as the Fair Gaming Act, was on the November 5, 2002 ballot in Arizona as an initiated state statute. It was defeated.[1]

Election results

Fair Gaming
ResultVotesPercentage
Defeatedd No947,34180.1%
Yes 234,935 19.9%
Election results from Arizona Elections Department.

Text of measure

Descriptive title

The description on the ballot said:

Continues Indian gaming in Arizona; requires increased government regulation of gaming operations and improved public disclosure of gaming revenues; permits Arizona non-tribal gaming operators a limited number of gaming devices, with 40% of gross revenues directed to the general fund to pay for: kindergarten through third grade reading programs, college scholarships, prescription drug benefits for seniors, rural health-care, police and fire protection, and tourism promotion; authorizes Tribes to share 8% of gross revenues with the State; authorizes Tribal-State gaming compacts for a ten year period; assures rural Indian Tribes receive a fair share of gaming revenues.[2][3]

Legislative analysis

The summary from the Legislative Council was:

Proposition 201 allows racetracks conducting live horse and dog racing to operate slot machines and authorizes the Governor to enter into tribal gaming compacts allowing Indian tribes to operate slot machines and card and table games on tribal land. Racetracks would pay 40% of their "gross gaming revenue" (defined as the difference between gaming wins and losses, before deducting costs and expenses) from the operation of slot machines to the state to fund racing and agricultural programs, reading programs for kindergarten through third grade students, programs to provide medical assistance in rural areas and reduce the cost of prescription drugs for Medicare recipients, scholarships, statewide tourism, programs for problem gambling, local government programs to provide enhanced police, fire and emergency services, and to the state fund used for the general operation of state government. Tribes that compact to conduct house-banked blackjack or house-banked poker, or that elect to transfer unused slot machines would contribute 8% of their "gross gaming revenue" to the state fund used for the general operation of state government.

Arizona has entered into gaming compacts with 17 of the state's 21 Indian tribes. These compacts permit the tribes to operate specific gaming activities, including slot machines, that are, according to a federal court decision on appeal, illegal off of Indian reservations. These compacts begin to expire in the summer of 2003.

State law currently allows wagering on horse and dog racing at facilities that have state permits. State law does not presently allow horse and dog tracks to offer slot machines. Proposition 201 allows the operation of slot machines at racetracks and authorizes the Governor to enter into new gaming compacts with Indian tribes as follows:

Term

  • Racetracks--Each racetrack permittee must have a license to conduct live horse or dog racing before they may operate slot machines. The license is subject to renewal every 3 years and is revocable at anytime for cause. In addition, continued operation of slot machines will be subject to legislative review of the Arizona Department of Racing and the Arizona Racing Commission. State agencies undergo a complete review every 10 years and are subject to legislative oversight between reviews.
  • Gaming compacts - 10 years.

Facilities

  • Racetracks - Up to 10 racetracks statewide and up to 2 racetracks in a single county could operate slot machines.
  • Gaming compacts - Each tribe may operate 1 to 3 gaming facilities, depending on tribal enrollment.

Games

  • Racetracks - A maximum of 6450 slot machines at racetracks statewide would be allowed. The maximum number of slot machines at a single track would range from 550 to 950, depending on how many live races the track offers. This amount will increase every 5 years based on changes in the state's population.
  • Gaming compacts - Tribes may offer slot machines, blackjack, poker, wagering on horse and dog races, raffles and bingo. Each tribe may operate 600 to 2400 slot machines, depending on tribal enrollment. A maximum of 1000 slot machines is allowed at a single facility. A tribe that elects expansion of terms found in existing compacts may offer blackjack and poker at 50 to 75 tables per facility, depending on how close the facility is to a heavily populated city. Additionally, if the tribe elects expansion of terms found in existing compacts, the tribe may contract with another tribe to operate that tribe's slot machines and pay not less than 50% of the net win to the other tribe. The number of slot machines allowed adjusts every 5 years based on changes in the state's population. The Governor and each tribe may renegotiate the number of gaming tables allowed at that time.

Transfer provisions

  • Racetracks - There are no provisions for racetracks to transfer their slot machine allotments to other tracks.
  • Gaming compacts - Tribes may transfer a portion or all of their slot machine allotments to other tribes; a transferring tribe will receive not less than 50% of the net win from the transferred slot machines.

Revenue

  • Racetracks - Tracks must pay 40% of their gross gaming revenue from the operation of slot machines to the state. Monies would be distributed to numerous racing and agricultural programs, to reading programs for kindergarten through third grade students, to provide medical assistance in rural areas and reduce the cost of prescription drugs for Medicare recipients, to provide scholarships, to promote statewide tourism, to combat problem gambling, to cities to provide enhanced police, fire and emergency services and to the state general fund.
  • Gaming compacts - Tribes electing expansion of terms found in existing compacts must contribute 8% of their gross gaming revenue to the state in return for the exclusive right to operate house-banked card games such as blackjack and housebanked poker games and to operate transferred slot machines from other tribes up to the limit of 1000 slot machines per casino. Monies go to the state general fund. Pursuant to current law, tribes will continue to pay their share of regulatory costs incurred by the state.

Disclosure

  • Racetracks - Tracks must disclose gross gaming revenue from each racetrack and each gaming activity. This information is open for public inspection at the Arizona Department of Racing.
  • Gaming compacts - Each tribe must disclose to the Arizona Department of Gaming its gross gaming revenue for each facility and each gaming activity and its contributions to the state. This information is open for public inspection.

Regulation

  • Racetracks - The Arizona Racing Commission must adopt rules setting forth standards for inspecting slot machines and monitoring their use, surveillance, record keeping and reporting requirements and standards for background investigations and licensure of employees. The racetracks would continue to be subject to annual audits.
  • Gaming compacts - Compacts must establish standards for investigation, licensing and certification of gaming employees and persons who provide gaming goods or services by tribes and the state, must require minimum standards and operating procedures for gaming, must authorize audits and inspections of gaming facilities by the Arizona Department of Gaming and enforcement by the Department of compact terms, must establish technical specifications and testing and inspection procedures for slot machines and must establish surveillance requirements.

Results of Statewide Expansion of Gambling - Any changes to state law to allow expansion of gambling must be enacted by the voters. [S] (1553)[4][3]

Path to the ballot

Progressive Campaigns, Inc. collected the signatures to qualify the measure for the ballot.

Similar measures

See also

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External links

References

  1. Arizona 2002 election results
  2. Secretary of State 2002 ballot measures summary, accessed December 31, 2013
  3. 3.0 3.1 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.
  4. NCSL ballot measure database, accessed December 31, 2013