SACRAMENTO – Gov. Arnold Schwarzenegger's opposition is starting to take a toll on a November ballot measure that could deliver slot machines to the state's big card clubs and racetracks.

Prominent media consultant Don Sipple, citing his allegiance to the governor, has left the campaign, and another high-profile strategist close to Schwarzenegger recently re-examined his role in the effort.

Political consultant George Gorton said yesterday he has no plans to leave the campaign after discussing the delicate situation about a week ago with Schwarzenegger.

"I have a little different status than Don," Gorton said. "I was working for the initiative before I came to Arnold and he knew about it. I briefed him on it during the campaign and after he was elected.

"I've told him that I'm completely loyal to him and if at anytime he thinks that the campaign is becoming pointed at him or if it does in my judgment, I will resign."

Sixteen of the state's biggest card clubs and racetracks have spent nearly $12 million on the ballot measure, which would give them 30,000 slots if California's more than 50 gambling tribes refuse to comply with terms most would consider intolerable.

The initiative, Proposition 68, will appear on the November ballot just ahead of another gambling measure, Proposition 70. Sponsored by the Agua Caliente band of Palm Springs, Proposition 70 would offer unlimited gaming to tribes that agree to pay the state's 8.84 percent corporate income tax rate.

Schwarzenegger announced his opposition to Agua Caliente's proposal early on. But he did not come out publicly against the rival measure until June 15, just days before signing new gambling agreements with five tribes, including Pala, Pauma and Viejas of San Diego County.

The new compacts give the tribes unlimited slot machines in exchange for a large new cut for the state, enough to finance a $1 billion bond and to generate ongoing revenue of up to $200 million a year, according to the administration. Tribes are now limited to 2,000 slots each.

The card clubs appeared to have an inside channel to Schwarzenegger when they launched their initiative with Gorton and Sipple on board, along with Democratic consultant David Townsend.

But the administration immediately distanced itself from the effort, and Schwarzenegger has been saying privately for months that he would oppose the measure. When the governor announced his opposition, Sipple said he felt obliged to leave the campaign.

"They reached a point where they had to be critical of the governor's negotiated compacts, and they were going to do print ads . . . I was just not comfortable doing that," Sipple said.

One insider said Sipple "was involved in everything" and described his departure as a blow to the campaign. Others disagreed.

"It's in no way indicative of our campaign slowing down or of any of the people involved losing interest," campaign spokesman Greg Larsen said. "Clearly we'd prefer to have Don Sipple on our team . . . but the reality is it is a difficult situation and we understand."

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