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Oversight on casino funding

11 September 2007

SAN DIEGO, California -- As reported by the San Diego Union-Tribune: "The California Gambling Control Commission hasn't done what is needed to ensure that casino tribes pay their fair share to a fund for communities affected by casinos, an appeals court has ruled.

"The commission let tribes determine how they calculate their profits before sending a percentage to the state and completed only one audit of 28 tribes that contribute to the fund, justices found.

"The ruling Thursday comes in a lawsuit by a former gambling watchdog whose lawyer says the commission's practices have let tribes skirt more than $300 million in payments to the state.

"And the ruling comes just as Gov. Arnold Schwarzenegger is arguing that successful casino tribes should get tens of thousands more slot machines so they can contribute billions to the state's budget.

"...Findings: An appeals court has found that the California Gambling Control Commission let tribes define a key measure of profitability and didn't properly audit contributions to a fund for communities affected by casinos.

"The Attorney General's Office said it is still reviewing the court's decision and has not decided what to do next..."

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