"This report demonstrates why the compacts negotiated with five tribes by Governor Schwarzenegger in 2006 should be rejected by the Legislature. Although increased state revenue sharing is the principal argument in favor of the compacts, in reality, the agreements provide just 0.5 percent of state General Fund revenue and fall far short of agreements recently achieved in other states. The Legislative Analyst’s Office (LAO) found even these projections “not realistic.” The LAO also warned of the potential negative effects of the compacts on vital state programs that help non-gaming tribes, and assist local governments in financing the public safety services that are necessary to cope with the impacts of expanded tribal casino gambling.

The compacts are inconsistent with the original rationale for legalization of tribal casinos – to improve the economic viability of all tribes. Instead, the wealthiest tribes, which happen to be the largest political contributors, have won lucrative expansion deals while poorer tribes are denied even the opportunity to operate small casinos.

Last, the compacts fail to address in any way the effects of the recent federal court ruling which eliminated the federal regulatory oversight of tribal casinos, leaving the public with no independent ability to ensure that tribal casino games are run fairly, to verify the amount of revenue to which the state is entitled and to deter criminal activities such as money laundering.

The state of California has a compelling interest in securing tribal gaming compacts that protect the state taxpayers, local communities and the majority of the Indian population that has been left out of the process. The compacts of 2006 achieve none of these objectives, and should be rejected by the Legislature."

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Peter Dreier: California Tribal Casino Compact Amendments: Four Major Flaws (California Progress Report 5/25)