SACRAMENTO -- California and Nevada gambling interests battling over Proposition 5, the Indian gaming initiative, are on a record-setting financial pace as they head toward the November ballot.
Together, the campaigns backed by gaming tribes and Nevada casinos raised $58.2 million and spent $53.1 million through Sept. 30, according the latest financial reports released Monday.
Previously the most money clearly raised for one ballot contest was $55 million on Proposition 104, a no-fault insurance initiative that was among five auto insurance-related measures proposed in 1988, according to the secretary of state's office.
But staff in that office cautioned that the recent practice of some committees raising and spending money for and against several initiatives have made it impossible to determine the actual amount spent in other expensive campaigns.
In the Proposition 5 contest, Californians for Indian Self-Reliance, the sponsors of the initiative, reported raising a total of $42.7 million and spending $36 million - with virtually all of the donations coming from gambling tribes.
The Coalition Against Unregulated Gambling, reported raising a total of $15.5 million and spending $17.1 million - with nearly all the money contributed by businesses with Nevada casinos.
"I think at this point it's gambling money versus gambling money," said Gina Stassi, spokeswoman for the opponents. "It's time to get to the real issue. The real issue is (that) Proposition 5 is a flawed ballot measure."
Initiative campaign spokesman Steve Glazer responded that "the Nevada casinos are spending millions to protect their billion-dollar profits.
"The Indians are defending their very own economic survival (with casinos that have) given them jobs, reduced welfare and provided self-reliance," Glazer concluded.
At issue in the Proposition 5 battle is the chance for interested tribes to operate games, including electronic video terminals, that are now offered in casinos on about three dozen reservations.
The existing gambling tribes currently are operating more than 10,000 such terminals that the governor considers illegal and that U.S. attorneys are trying to shut down because the tribes don't have a federally-required agreement known as a compact with the state to operate them.
Eleven tribes have signed compacts with the governor, allowing them to operate lottery-style games in which the house has no stake. Field tests are supposed to begin with these new machines later this month.
Proposition 5 includes a compact with fewer restrictions than existing compacts.
So far, three of the tribes with state compacts have announced opposition to Proposition Five and representatives of two of these tribes have appeared in opponents' television commercials.
The financial reports released Monday showed that in the latest reporting period of July 1 to Sept. 30, the proponents of the initiative raised $16.4 million and spent $23.4 million.
The largest contributions were $3 million donation from the Pechanga Band of Mission Indians of Temecula and $2 million from the Viejas Indian Reservation in Alpine.
The San Manuel Tribe of Highland gave the initiative campaign a $10 million loan bringing its total loans to the campaign to $19 million. That makes this San Bernardino County tribe the largest financial supporter of the measure.
The advocates' campaign also received $250,000 from the Soboda Band of Mission Indians of San Jacinto, $150,000 from the Elk Valley Rancheria of Crescent City, $100,000 from the Cabazon Band of Mission Indians in Indio, $80,000 from the Redding Rancheria of Redding and $25,000 from the Tulare River Tribal Council of Porterville.
At most, less than $35,000 came from non-Indians. The Proposition 5 coalition report includes the $8 million spent qualifying the initiative for the ballot.
The Proposition 5 campaign didn't release details of its expenditures. By law, the campaign only had to get its report postmarked by Monday.
Opponents reported raising $14.56 million in the third quarter and spending $15.8 million. Of the total raised in this period, $14.55 million came from Nevada gambling interests.
The largest Nevada donations in this latest reporting period were $4.62 million from Circus, Circus; $4.14 million from Mirage Resorts, Inc. made by the subsidiary Bellagio; and $4.13 million by Hilton Hotels Corporation.
Other major Nevada contributions were $750,000 by W.G. Bennett of Las Vegas, $450,000 by Station Casinos, $400,000 by Primadonna, $250,000 Imperial Palace Hotel and Casino and $100,000 by Harveys Casino Resorts.
The opponents reported spending at least $11 million on broadcast advertising and $1 million on slate mailers that will include the opponent's message among advertising for candidates and possibly other ballot measures.
While there have been a few joint appearances and a television debate may be held later this month, most of the Proposition 5 campaign has been conducted on television.
The latest round of TV commercials continue recent themes of pitting tribes against each other while increasing the attack on the other side. Pro-Proposition Five ads try to tie tribes opposing the initiative to Nevada casinos while emphasizing its widespread support among most state tribes.
Opponents highlight success of gambling tribes without the initiative and charge proponents are trying to escape complying with state tax, environmental and health and safety laws.
Together the two sides are spending an estimated $1 million or more a week on television.