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California Video Terminals Terminated

4 January 2005

CALIFORNIA – As reported by the Palm Springs Desert Sun: "It will be lights out, as of Jan. 8, for the video display terminals in the Morongo Casino Resort & Spa in Cabazon, as part of a multi-faceted agreement between the Morongo Band of Mission Indians and legal advisers to Gov. Arnold Schwarzenegger.

"The agreement, announced Monday, says the state will not take legal action alleging the tribe is in breach of its compact if roughly 2,025 of the video lottery terminals in place in the casino go dark before 12:01 a.m. Saturday, Jan. 8.

"At that time, Schwarzenegger is prepared to declare that action constitutes a 'complete cure' of what the state alleged to be a material breach of compact, thereby eliminating the state's right to file a lawsuit against the tribe.

"Morongo Band, at the same time, is free to replace the terminals, or modify them, to Class II standards, which includes electronic bingo.

"The tribe also may seek clarification from a court, the state or an arbitrator over whether device that look and play like slot machines but bases its pay-outs on a pool of money built up by players -- as in a lottery-- constitutes a valid, lottery device allowed in the state.

"…George Forman, a legal advisor to the Morongo Band and key counsel on the video lottery terminal matter, called it a 'win-win' because the tribe is as convinced today as it was before that the games are authorized by state law to the California State Lottery…"

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