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California Nears $1 Billion Gambling Deal

SACRAMENTO, California – As reported by the San Diego Union Tribune: "A group of California tribes and Gov. Arnold Schwarzenegger are near agreement on a deal that could immediately deliver $1 billion or more to the state while lifting the lid on slot machines for Indian casinos.

"The emerging agreement would generate a large, one-time payment as a bond issue financed with increased revenue from the tribes, according to several sources close to the negotiations.

"In exchange, tribes could have unlimited slot machines as long as they were willing to pay graduated fees of up to $25,000 a year per machine, sources said. Their existing 20-year tribal-state gambling agreements, or compacts, would be extended.

"But a number of the state's most successful gambling tribes have balked at the terms and are pondering other options for themselves, which could include a battle in the Legislature, where any new compacts must be approved.

"…In an interview, Schwarzenegger said he had no particular concerns about how much bigger California's $6 billion Indian gambling industry might get, as long as it grows with sensitivity to local and environmental concerns.

"…Rather than a percentage of Indian casino winnings, such as the 25 percent Connecticut collects, tribes suggested and Schwarzenegger agreed to accept a graduated scale of set fees per machine. The fees would increase with the number of slots in a casino…"

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