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Maloofs Pad Schwarzenegger Campaign1 September 2004SACRAMENTO -- As reported by the Associated Press: "When they organized a $1 million fundraiser for Gov. Arnold Schwarzenegger in February, Sacramento Kings owners Gavin and Joe Maloof's family casino business was negotiating a deal that would net them millions from running what could be one of the world's largest casinos, according to interviews and state records. "Six months later, Schwarzenegger announced a deal for a tribal megacasino that will be managed by a company partially owned by the Maloofs. The Maloof fundraiser means that Schwarzenegger, who campaigned on a refusal to take money from Indian gambling interests, received huge contributions through those connected to gambling businesses. "George L. Maloof Jr., who runs the family's Palms in Las Vegas, said he discussed the deal before the fundraiser, but said his brothers weren't involved at the time and the agreement wasn't signed until afterward. "...The Maloofs publicly emerged two weeks ago as players in the deal. Schwarzenegger spokesman Vince Sollitto said that's when the administration learned of their involvement as well. "...'It's our understanding that the Maloofs had not even begun discussion of a management contract with the band at the time they held the fundraising event in February,' Sollitto said. He said the timing means Schwarzenegger kept his promise to avoid tribal contributions. "Bob Stern, president of the Center for Governmental Studies, said Schwarzenegger should refund the $64,505 contributed by Maloof Sports and Entertainment..." |