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California committee holds hearing on gaming rules

"Nonetheless, the Schwarzenegger administration did not factor the apparent regulatory void in negotiations last year on five new agreements that would permit a major expansion of tribal gambling in Southern California.

"As a result, the lack of federal oversight has become a major stumbling block in the push for ratification of those long-term deals – multi-billion-dollar compacts that would run through the end of 2030.

"Today, an Assembly committee will convene a hearing on the matter. Lawmakers are expected to ask administration officials why they did not insert the operating rules into the compacts, which is where the courts say such issues should be resolved. A spokeswoman for the governor said the legal landscape was not defined until last fall and may still be changed by Congress. The administration also prefers to deal with the issue in a way that applies to all gaming tribes, spokeswoman Sabrina Lockhart said.

"...The rules set the basic standards for the internal security that protects the integrity of casino operations. They cover cash handling and counting, cage and credit operations, internal audits, surveillance and the games – from technical requirements to how often decks of cards should be changed.

"In 37 audits conducted since the standards were introduced in January 2001, the federal commission found more than 2,355 violations – an average of 64 per casino. Six audits of California casinos uncovered 410 violations. From the total violations, more than 30 cases of suspected criminal activity were referred to law enforcement agencies.

"...Both courts concluded the National Indian Gaming Commission had little, if any, authority to regulate Nevada-style Indian casinos. Congress deliberately gave that power to tribes and states, the courts ruled.

"California believed its tribal gaming agreements rested on a three-legged regulatory platform, with the responsibility shared by tribes, the state and the federal government, said Assemblyman Alberto Torrico, a Fremont Democrat and chairman of the Governmental Organization Committee, which will hold today's hearing..."

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