California

Schwarzenegger says new gaming deal 'this close'

Wednesday, June 16, 2004

California Gov. Arnold Schwarzenegger (R) said on Tuesday he is "this close" to a new gaming deal with a small group of tribes that would deliver on his campaign promise to bring more revenues to the state.

At a press conference in Sacramento, Schwarzenegger said four tribes are part of the pending agreement, although newspaper reports put the number at five. He hoped that others would join in once the new compacts are signed.

Schwarzenegger declined to say how much he expects out of the compacts. But newspaper reports described a deal that could bring up to $1.2 billion to the state. According to the reports, the tribes will use their superb credit rating to finance a bond package to help the state out of its budget mess.

In addition, the tribes would share a portion of casino profits with the state. Reports put the figure at $275 million annually, or 15 percent of revenues.

In exchange, the tribes would be allowed to expand their operations. Currently, tribes are limited to 2,000 slot machines under 20-year agreements.

The tribes ready to sign a deal, according to news reports, are the Rumsey Band of Wintun Indians, the United Auburn Indian Community, the Pala Band of Mission Indians, the Viejas Band of Kumeyaay Indians and the Pauma Band of Mission Indians. The first three tribes are represented by the same attorney.

At the press conference, Schwarzenegger said he would oppose two gaming initiatives on the November ballot. One would force tribes to share 25 percent of slot machine revenues of allow slot machines at non-Indian facilities. The other, sponsored by the Agua Caliente Band of Cahuilla Indians, would require willing tribes to share 8.84 percent of casino revenues in exchange for unlimited gaming under 99-year compacts.