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New California Gambling Agreement Splits Tribes

SACRAMENTO, California – As reported by the San – Against the threat of a political firefight this fall, Gov. Arnold Schwarzenegger yesterday began finalizing terms of a major new Indian gaming agreement that so far has divided the state's most powerful tribes.

"The emerging deal could generate an upfront payment of more than $1 billion, plus an unspecified amount of ongoing revenue, in exchange for unlimited slot machines and an extension on existing tribal gaming agreements, or compacts, set to expire in 16 years.

"But an agreement may not head off rival initiatives pending for the November ballot that could bring casino gambling to urban California and dramatically expand it throughout the state.

"The tentative agreement prompted an exodus of tribes who consider the terms too expensive and a warning from a leading anti-gambling voice who said California is about to become 'the gambling capital of the world.'

"…The seven tribes – which include Pala, Pauma and Viejas of San Diego County – have agreed to dedicate a new revenue stream to finance a bond issue that one knowledgeable insider said could be as much as $1.5 billion.

"…The tribes could have as many slot machines as they want, for a graduated scale of fees that top out at $25,000 a year per machine, according to numerous sources close to the negotiations.

"…In addition to unlimited slots, Schwarzenegger offered to weigh in against a ballot initiative that would give slot machines to race tracks and card rooms and to extend the existing tribal compacts 10 to 15 years, sources said.

"…But the concessions have driven away other influential tribes, such as Morongo of Riverside County, San Manuel of Highland, Agua Caliente of Palm Springs, Pechanga of Temecula and Sycuan and Barona of San Diego County. All have thriving casinos and were either participating in or monitoring the negotiations.

"…But both [Pechanga Chairman Mark] Macarro and San Manuel Chairman Deron Marquez hinted that they were troubled by more than the price tag.

"Marquez and Macarro said their tribes will consider supporting an initiative sponsored by Agua Caliente as an alternative…"

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