Revenue-sharing provisions in Class III gaming compacts raise a "red flag," a Bureau of Indian Affairs official told lawmakers in California.

Paula Hart, director of the BIA's Office of Indian Gaming Management, said states cannot "impose" taxes, fees or other charges in compacts. But she said the agency will accept revenue-sharing as long as there is a significant benefit to the tribe.

"Whenever we see a revenue-sharing provision in a tribal-state compact, it sends up a red flag," Hart told the Senate Governmental Organization Committee, The San Diego Union-Tribune reported.

A federal magistrate adopted similar reasoning in holding that the state negotiated in bad faith with the Rincon Band of Mission Indians. The tribe wants to offer more slot machines but the state demanded a greater share of the revenues.

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Judge's ruling in Rincon case reflects BIA policy, official tells lawmakers (The San Diego Union-Tribune 6/11)