Observers of California's gaming industry say Gov. Arnold Schwarzenegger (R) has "flip-flopped" on urban casinos.

Schwarzenegger originally said he opposed the expansion of gaming in urban areas. That's one of the reasons he is fighting Proposition 70, which would clear the way for slot machines at card clubs and racetracks in cities.

But Schwarzenegger is coming under fire for signing a compact for a large urban casino in the Bay Area. At the same time, he accepted more than $1 million raised by a family with a stake in the deal.

Schwarzenegger says he is compelled to negotiate because the land is already held in trust for the tribe. The Lytton Band of Pomo Indians wants to convert a card club into a major facility with up to 2,500 slot machines.

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THE CASINO NEXT DOOR (The Los Angeles City Beat 9/2)