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Schwarzenegger Threatens Casino Closure

CALIFORNIA – As reported by the San Diego Union Tribune: "Just weeks after extending an olive branch to the state's most powerful Indian tribes, Gov. Arnold Schwarzenegger is threatening to try to shut down six of their casinos – including two of the largest in San Diego County – in a dispute over how their slot machine numbers are tallied.

"In a letter this month from his top lawyer, Schwarzenegger rejected a proposed compromise from Sycuan, Barona and four other tribes, warning he would seek a court order to revoke their gambling compacts unless they remove the machines in question or tally them as the state insists.

"The move has tribal officials questioning why Schwarzenegger would launch what could be a major battle over a device that, as of now, accounts for only a small sliver of California's $7 billion Indian gaming industry.

"…Schwarzenegger spokesman Darrel Ng said that after a year of negotiations, the governor is convinced that some tribes are using slot machines with multiple seats to exceed the slot limits of state gambling agreements, or compacts.

"…In response to Schwarzenegger's edict on multistation machines, Pechanga Chairman Mark Macarro and the alliance group chairwoman, Lynn Valbuena of San Manuel, both issued brief prepared statements, saying they remain hopeful of resolving the dispute. A Morongo spokeswoman said Chairman Maurice Lyons considers the governor's stance 'disproportionately hostile.'…"

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