Gov. Arnold Schwarzenegger (R) is poised to announce a gaming compact for an urban casino in the Bay Area, The San Francisco Chronicle reports.

The Lytton Band of Pomo Indians has nine acres in trust in the city of San Pablo. The agreement would allow the tribe to operate slot machines and other Class III games at the site.

The tribe is one of several that has been meeting with Schwarzenegger's negotiators on new casino deals. The tribe will pay $1.5 million annually in lieu of property taxes to San Pablo and up to $3.5 million a year in revenues to the state and Contra Costa County.

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Governor, tribe close to deal on Bay Area casino (The San Fransciso Chronicle 6/2)