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California Governor Gives Control of Slots to State Gambling Regulators

"In an executive order, Davis said the commission will be in charge of licensing the machines as well as making sure that tribes statewide don't end up with more machines than allowed under state-Indian agreements known as compacts.

"Gaming tribes are concerned that the newly formed commission is overstepping its authority.

"…Non-gaming tribes worry that the state could restrict the overall number of available licenses before the tribes have a chance to get machines.

"The governor and Attorney General Bill Lockyer jointly sent a letter explaining their position to an attorney representing the tribes' accountant, Michael Sides.

"Sides has overseen slot machine allocation and the collection and forwarding of gambling revenue to the state for distribution to non-gambling tribes, communities near tribal casinos and other uses outlined in the compacts.

"The letter signed by deputies of Davis and Lockyer instructs Sides not to conduct further draws of machine allotments or represent himself as someone with the authority to conduct draws or issue gaming device licenses. The letter further states any state powers Sides thought he had to issue such licenses have been revoked.

"… Tribes who are yet to acquire slot machine licenses fear state regulators will make a more conservative interpretation than tribal accountants of the mathematical formula in the gaming compact that determines the maximum number of slot machines allowed statewide.

"…The gambling commission has been trying unsuccessfully to get details about the allocation of machines and individual tribal payments of the fees required under the compact.

"Without those details, the panel said it cannot dole out the $39 million for non-gaming tribes it received in a lump sum from gaming tribes…"

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