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Schwarzenegger Pulls Back on Urban Casino Plan

SACRAMENTO, California – As reported by the San Diego Union-Tribune: "Unable to quell broad bipartisan opposition, Gov. Arnold Schwarzenegger yesterday pulled back a controversial tribal gambling agreement that would have cleared the way for a large urban casino in the San Francisco Bay Area.

"The decision, representing the popular governor's first high-profile defeat, appears to liberate four other Indian gambling agreements, or compacts, including a potentially lucrative deal for the Ewiiaapaayp band of East County.

"The administration had insisted on bundling the five compacts in a bill for ratification, a strategy designed to protect the casino that the Lytton Band of Pomo Indians hopes to build in San Pablo, a blue-collar suburb 20 miles northeast of San Francisco.

"Schwarzenegger's aides spent much of the week trying to sell the deal to skeptical members of both parties. With the Legislature set to adjourn today, the administration decided late yesterday to shelve the San Pablo package until next year.

"…Lytton tribal Chairwoman Margie Mejia said the decision to step aside was made during an afternoon meeting with Schwarzenegger.

"…'The end result was that the tribe stood back, not to get in the way of the other tribes, and we will revisit the issue in a calmer atmosphere.'

"The move was greeted with relief by Democrats and Republicans in both houses…"

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