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Experts: California Governor at Disadvantage in Compact Renegotiations

31 March 2003

WASHINGTON, DC – As reported by the Desert Sun: "California Gov. Gray Davis has started renegotiating tribal gambling agreements with a bad hand.

"The Davis administration told tribes last month it wants to open talks about changing tribal gaming agreements, offering to allow more slot machines in return for a greater share of gaming revenues. Davis hopes to get $1.5 billion in revenue sharing to help close a $30 billion state budget deficit.

"But many of the state's largest gaming tribes, though they would like additional slot machines, say they may stick to their current limit until their compacts expire in 2020.

"…`First (Davis) gives away everything that greatly empowers the other side, and now he's asking for things,' said I. Nelson Rose, a law professor at Whittier College who specializes in gambling issues. `It's the worst possible way to do a negotiation.'

"But 18 tribes have expressed interest in reworking their tribal compacts and three others want initial agreements, said Amber Pasticha, a Davis spokeswoman. California's cap of 51,000 slot machines has limited some tribes who are willing to agree to more revenue sharing in exchange for more games, she said.

"… Many experts say the Davis administration has little chance of raising $1.5 billion from American Indians…"

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