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Schwarzenegger Challenged by Tribes on Gambling Plan

19 July 2004

LOS ANGELES – As reported by the Associated Press: "A group of Indian casino owners is throwing its weight behind a gambling initiative on the November ballot that threatens Gov. Arnold Schwarzenegger's ongoing negotiations with tribes to share their revenue with the state.

"The California Indian Nations Gaming Association said Friday it was endorsing Proposition 70, which would allow tribes to operate as many slot machines as they choose as well as games currently banned in California such as roulette and craps. The tribes are currently limited to 2,000 slots.

"In return, casinos would be required to pay about 8.8 percent of their net gambling income to the state.

"…The move represents a direct challenge to Schwarzenegger, who has negotiated separate compacts with five tribes that authorizes them to expand their gambling operations in exchange for large payments to the state.

"…Those deals, however, could face court challenges and become invalid if the initiative passes in November…"

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