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Pechanga Band makes payment31 July 2008PECHANGA INDIAN RESERVATION, California -- (PRESS RELEASE) -- The Pechanga Band of Luiseno Indians today made its first payment to the State of California under the terms of its amended Tribal-State Compact, which was overwhelmingly upheld by voters this past February. Pechanga's payment to the state's General Fund totals $30.8 million and covers one quarter of a year's payment, along with a partial quarter from when the amendment was first enacted. Pechanga has also made a quarterly payment of $500,000 into the Revenue Sharing Trust Fund, which supports non-gaming tribes throughout the state. This first quarterly payment of $30.8 million is greater than the entire amount Pechanga paid to the state for all of 2007 under its original compact. Furthermore, the $500,000 paid for non-gaming tribes is nearly twice the annual amount that Pechanga previously paid. "I am sure that the voters of California are happy to hear that they got exactly what they voted for: more state revenue without raising taxes," said Mark Macarro, Chairman of the Pechanga Band of Luiseno Indians. "The state now has the flexibility to use this additional funding for education, public safety, healthcare, and other vital public services." In 2006, Governor Schwarzenegger and the Pechanga Band of Luiseno Indians reached an agreement to amend the tribe's compact, allowing Pechanga to operate more slot machines in exchange for significantly more revenues to the state, including a guaranteed $42.5 million annually on its existing 2,000 slots and up to 25% of profit on additional slot machines. The economic downturn affecting Southern California and the rest of the nation has also impacted the gaming business significantly. Pechanga Resort & Casino recently announced that due to the economic downturn, it was being forced to lay off approximately 400 members of its 4,700 person workforce. Of the current market conditions that precipitated the layoffs, Chairman Macarro said: "Clearly we would like to be in a position to generate more revenue for the state, but our business, like so many other businesses, is feeling the effects of high gas prices, the housing downturn, and other economic challenges. Even in tough times Pechanga honors its commitments." The Compact amendment was passed by a vast majority of the Legislature in June 2007. However, a group of competing gaming interests and one labor union sought to overturn the amended compact by placing a referendum on the statewide ballot. In February of this year, Prop 94 passed decisively with nearly five million voters supporting the Tribe's right to expand to meet consumer demand. The February vote marked the third time that voters in the state have overwhelmingly chosen to support Indian gaming. In 1999, Proposition 5 won by a landslide, legalizing Vegas-style slots on Indian reservations. After that law was challenged in court, Proposition 1A reaffirmed the voters desire to allow Indian gaming by an even larger margin (64.5%). |