Gambling. Legalization, Regulation, Taxation.

GAMBLING. LEGALIZATION, REGULATION, TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Amends Constitution to remove prohibitions against private lotteries and to permit voters to approve statutes authorizing casino-style gaming. Changes statutes to require two-thirds local voter approval for new or expanded cardrooms. Authorizes slot machines in Palm Springs. Creates California Gaming Control Commission with jurisdiction over gambling establishments and new division in Department of Justice to investigate and license gambling establishments. Grandfathers-in currently registered cardrooms. Eases requirements for publicly-traded corporations to own gambling establishments. Establishes 10% state tax on gross revenue of slot machines. Restricts use of revenues to local public safety. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State revenues could increase by up to tens of millions of dollars annually from fees and taxes associated with gambling operations and other economic activity. Some of these revenues would be offset by increased Proposition 98 funding and regulatory costs and, potentially, by reductions in other gaming-related revenues. Local revenues could increase by up to tens of millions of dollars annually from additional taxes/fees from gaming operations and other related economic activity