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California Reaches Tentative Tribal Casino Deal

SACRAMENTO, California – As reported by the L.A. Daily News: "Gov. Arnold Schwarzenegger and several Indian tribes have reached a tentative agreement on a deal that could bring the state an extra $250 million annually from casino gambling and provide $1 billion immediately to help ease the budget crunch, the Daily News has learned.

"Sources say the tribes that agree to this compact would be granted the right to install an unlimited number of slot machines in their casinos instead of the current 2,000 limit.

"Four tribes have come to tentative terms with the governor but an announcement might be delayed in expectation that others can be brought aboard, according to one insider.

"Another tribe, the Lytton Band of Pomo Indians, which does not now operate a casino, is in the final stages of negotiations to build one on land in the urban San Francisco Bay Area. This deal could eventually generate up to $75 million annually for the state on top of the $250 million.

"The four tribes closest to a deal would borrow $1 billion now against future gaming revenue and provide that money to the state. Schwarzenegger would use it to ease the severity of transportation cuts that have to be made this year.

"…Sources said the pending agreements will be written so that the state gets a larger share of take as the casinos add more slots. The goal is to make sure there is truly a market for expansion, after critics predicted that Schwarzenegger's willingness to drop slot-machine caps in return for revenue would result in an unbridled expansion of gambling in California…"

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