If approved, Propositions 94, 95, 96 and 97 would authorize 17,000 more slot machines for four of the state's biggest gambling tribes, located in Southern California. With passage of the propositions allowing expansion, the 4 tribes would be required to negotiate enforceable agreements with their local jurisdictions to address casino impacts and provide “reasonable compensation” for increased public service costs such as public safety and gambling addiction programs.

Supporters of the new compacts, including Gov. Arnold Schwarzenegger, have suggested that the gambling deals will provide $9 billion to help ease the state's fiscal crisis. The nonpartisan legislative analyst says of the likely fiscal impact, "Even assuming that all the 2006 compacts are ratified and a few more similar compacts are ratified in the future, we expect that compact-related sources will provide the general fund with less than one-half of a percent of its annual revenues for the foreseeable future." Opponents of the initiative include other Indian tribes, race track owners and labor unions. Gambling detractors say that gambling doesn't create new economic activity. It just substitutes one form of entertainment spending for another.