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Momentum Builds for California Casino Deals

SACRAMENTO, California – As reported by the L.A. Times: "For the last five months, Gov. Arnold Schwarzenegger's emissaries have convened in the stylish office of an attorney for several Indian tribes and fashioned something Schwarzenegger has sought since his campaign last fall — a way to get a bigger share of tribes' gambling revenue.

"…On Tuesday, he announced impending deals with four tribes willing to pay the state about 15% of their gambling profits in exchange for the right to operate an unlimited number of slot machines. The tribes also would obtain a $1-billion bond for the state to help close the coming fiscal year's budget gap, estimated at $14 billion.

"At the same time, the governor vowed to make sure that two November ballot initiatives on gambling — both of which would essentially take matters out of his hands — were defeated.

"On Wednesday, an attorney for five more tribes said that in coming days his clients would probably sign similar pacts, which would replace compacts negotiated by Gov. Gray Davis in 1999.

"…Critics of the deals note that the governor is settling for less than the 25% cut of tribal gambling money that he had called for during his campaign. But legislative leaders voiced support Wednesday for the pacts, which in addition to the $1 billion could provide California with annual payments of $275 million into future years.

"…Advisors to Schwarzenegger said that if his deals failed in the Legislature, or if other tribes declined to sign up, the Republican governor could respond by devising his own ballot measure to redefine the terms of gambling in California…"

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