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California Governor Unveils New Compacts

CALIFORNIA – As reported by the San Francisco Chronicle: "After months of exhaustive negotiations, Gov. Arnold Schwarzenegger unveils several new tribal gaming compacts today, a $1 billion payment toward the "fair share" he pledged to win from the state's Indian casinos during his campaign for governor.

"Only five of California's 61 gaming tribes will sign deals today, but the new compacts set the standard for all future negotiations: higher payments to the state's general fund in exchange for the state removing a cap of 2,000 slot machines per tribe.

"Today's signatories -- the United Auburn, Rumsey, Viejas, Pala and Pauma bands -- are generally content with the economic terms of the compacts. However, other tribes are holding back, fearful the new deals will compromise something far more important -- their sovereignty.

"Under the compacts, the tribes are being told to deal with labor union elections, and they are being told to resolve disputes with local governments through binding arbitration.

"…Schwarzenegger spokesman Vince Sollitto said the governor 'has been clear that these agreements are about more than money.'

"…Already, it's proving a tough sell in some corners of Indian country. One tribe, the Rincon Band of Mission Indians, is so angered by the state's new round of deals that it has sued to have them voided and plans to seek a federal restraining order early this week to keep them from going into effect.

"…Details of today's compacts include a $1 billion bond secured by the five tribes to help this year's budget and annual payments of $275 million from their projected slot-machine expansion -- an estimated 15 percent of the tribes' net profits. That's less than the 25 percent Schwarzenegger had earlier suggested he would view as their 'fair share.' In turn, the tribes will see the slot-machine cap vanish and their casino gaming exclusivity preserved through 2030.

"…As early as Tuesday, lawyers for the Rincon Band of Mission Indians say they will seek the injunction to block the new compacts from taking effect…"

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