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California Casino Deals Overestimated

SACRAMENTO, California – As reported by the L.A. Times: "Gov. Arnold Schwarzenegger, who struck deals with Indian tribes last year aimed at infusing state coffers with more than $1.3 billion, now concedes that the state will receive no more than $16 million this year.

"Some Democrats on Tuesday accused the Republican governor of overstating the benefits of his gambling deals to win legislative approval of them and to help derail two November initiatives that would have expanded gambling without his participation.

"They also cast doubt on whether the bulk of the money, most of it earmarked for transportation projects, would materialize anytime soon.

"…Schwarzenegger, relying on his negotiators' estimates about the benefits of the gambling deals, made his prediction after signing deals last June granting five Indian tribes the right to unlimited expansion of slot machines. He approved deals with four other tribes later in the year.

"In exchange, the tribes agreed to help the state out of what was a $14-billion shortfall. Tribes with casinos would use their new financial clout to secure a $1-billion bond for state transportation projects and make annual payments to the state based on the number of slot machines they added to their casinos…"

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