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Effects of Rincon ruling uncertain20 May 2008CALIFORNIA -- As reported by the North County Times: "A recent ruling by a San Diego federal judge that the state can't replenish its cash-starved coffers by taxing tribal casinos has the gambling world abuzz, but there is little consensus on what effect the decision might have on the ever-expanding industry. "The decision came from a lawsuit filed by the Rincon Band of Mission Indians, which owns a casino in Valley Center. Rincon filed the lawsuit after negotiations with the state broke down over how much the tribe was to pay in exchange for more slot machines. "Gov. Arnold Schwarzenegger was elected in part on his pledge to make tribes pay more for their casinos. He has successfully negotiated with some of the largest gambling tribes in California, including the Pala band near Fallbrook and the Pechanga band near Temecula, to pay billions to the state. "Attorneys for the state appealed the judge's decision to the 9th U.S. Circuit Court of Appeals. "But if the decision stands, it could undermine the governor's pledge to voters to collect billions from tribal casinos. "...A spokeswoman for Schwarzenegger said the judge's decision would not have an effect on his negotiations with other tribes..." |