Ballot Measures Generate $600 Million In Campaign Contributions

Ballot measure campaigns in 32 states raised almost $600 million in campaign contributions in 2003 and 2004, with gambling measures in nine states drawing nearly $205.5 million to make gambling the costliest issue in the 2004 election cycle, a new report shows.

Ninety-two percent of the money raised for the gambling measures came from sources with direct ties to gambling or with a vested interest in the issue, according to the report by the Institute on Money in State Politics. Racetracks, casinos, Indian tribes and tribal casinos primarily financed the campaigns backing or opposing the gambling measures, which involved a variety of topics.

Many of the businesses contributing to the measures were owned by national or international gambling companies seeking either to expand the market in the states where they operate or to protect their existing interests in states considering expanded gambling. For example, Magna Entertainment Corp. gave directly and indirectly to initiatives in California, Florida and Oklahoma that would have allowed slots machines at racetracks or made it easier to allow racetrack slots in the future, the report noted. The company owns racetracks in all three states.

Pinnacle Entertainment of Las Vegas and Churchill Downs California, a subsidiary of Kentucky-based Churchill Downs Inc., both contributed to a California measure that would have allowed slots at card rooms or racetracks. And 96 percent of the money supporting a Colorado amendment to allow video gambling at racetracks came from Wembley PLC, an international gambling company based in London that operates four tracks in Colorado.

“Direct democracy is alive and well in this country, as evidenced by the large number of issues brought directly to the voters,” noted Institute Executive Director Edwin Bender. “Unfortunately, it’s often hijacked by special interests that are looking to improve their bottom line.”

The Institute is a nonprofit, nonpartisan organization that collects and analyzes campaign contribution information for state-level candidates, political party committees and ballot committees. Its searchable database of contributions is available online at www.followthemoney.org.

The report, Taking the Initiative: Ballot Measure Money, 2004, examines the contributions to ballot committees involved in gambling measures in nine states: California, Colorado, Florida, Maine, Michigan, Missouri, Nebraska, Oklahoma and Washington. It also looks at four other issues that spanned state lines, examining the money behind the efforts to:

— limit lawsuit liability. Ballot committees in seven states raised $101.3 million to support or oppose measures that would have placed limits on lawsuits, with $55 million of the funds coming from lawyers, physicians and hospitals. The measures in Florida, Nevada, Oregon, Texas and Wyoming focused on medical malpractice laws. In addition, California voters approved a measure limiting who could bring suit under the states Unfair Competition Law, and Colorado voters rejected an attempt to repeal a law limiting the damages a property owner could receive from construction companies found responsible for construction defects.

— increase tobacco taxes. Voters in Colorado, Oklahoma and Montana approved measures raising tobacco taxes, after campaigns that drew $5.9 million. Seven major contributors four tobacco companies and three health organizations gave almost half of that amount. Philip Morris, Altria, R.J. Reynolds Tobacco and the U.S. Smokeless Tobacco Co. gave $2.1 million of the $2.4 million raised to fight the proposals. The American Cancer Society, American Heart Association and American Lung Association gave about $828,500, or about one-fourth of the total raised to support the tax increases.

— change hunting laws or protect the right to hunt and fish. Voters in five states took up this issue. Efforts to amend state constitutions to protect the right to hunt and fish in Wisconsin, Montana and Louisiana drew little money and passed easily. But in Alaska and Maine, the question of prohibiting certain bear-hunting practices generated nearly $3.4 million in contributions and went down to defeat in both states. Four contributors gave about one-third of the money in the two states. The Humane Society of the United States gave $509,350 to support the changes; the Ballot Issues Coalition, Safari Club International and its chapters, and the U.S. Sportsmens Alliance contributed a combined $627,500 to fight the measures.

— extend the length of time state legislators could hold office before term limits went into effect. Voters in Arkansas and Montana defeated attempts to change the length of term limits, following campaigns against the measures that were financed largely by one of three groups: the Citizens in Charge Foundation, Americans for Limited Government, and U.S. Term Limits. All three groups had ties to Paul Jacob, a longtime advocate of term limits. Supporters of longer term limits raised $417,000 in Arkansas but no money in Montana.