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Schwarzenegger, Tribes Continue to Clash

5 November 2004

CALIFORNIA – As reported by the Associated Press: "Gov. Arnold Schwarzenegger may have beaten back ballot measures aimed at expanding gambling in California, but he hasn't succeeded in striking deals with a majority of casino-owning American Indian tribes to share revenue.

"After the divisive election, the governor and tribes remain in a standoff, with neither side willing to be the first to head to the bargaining table.

"The tribes are still bitter over Schwarzenegger's campaign remarks that they were 'ripping off' the state. Their demand for an apology has gone unanswered.

"'Let them come to me and negotiate,' Schwarzenegger said soon after the election, predicting tribes will eventually want to work out a deal.

"…I. Nelson Rose, a law professor at Whittier College and expert on gambling, said tribes have the upper hand because of the ironclad casino agreements granted by former Gov. Gray Davis.

"…Schwarzenegger, struggling to pay off California's nearly $8 billion deficit, struck deals with 10 tribes earlier this year requiring them to pay the state as much as 25 percent of their gambling revenue in exchange for operating more slot machines.

"…On Wednesday, the governor said he was close to new gambling deals with five more tribes. Still, he has yet to reach agreements with a majority of the state's 53 casino-owning tribes…"

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