A ruling from the 9th Circuit Court of
Appeals contained some harsh language for states trying to seek a share of tribal gaming revenues.
The ruling said California Gov. Arnold
Schwarzenegger (R) negotiated in bad faith with the Rincon Band of Luiseno Indians. He demanded a big chunk of casino revenues without making a meaningful concession, the court determined.
"It is one thing to ask the tribes to contribute funds so the state is not left bearing the costs for gaming-related expenses; it is quite another to ask the tribes to help fix the
state’s budget crisis," Judge Milan Smith Jr., a George W. Bush nominee, wrote for the majority.
The Indian Gaming Regulatory Act does not directly speak to the issue of revenue sharing. But it suggests that tribes might be asked to "defray the costs" of regulating gaming and might have to share revenues "comparable to amounts assessed by the
state for comparable activities."
The BIA has approved Class III gaming compacts with revenue-sharing rates as high as 25 percent of slot machine revenues. The BIA tries to determine whether the state has guaranteed some form of exclusivity to the tribe or has made other concessions.
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9th Circuit Decision:
Rincon
Band v. Schwarzenegger (April 20, 2010)
Earlier Story:
Column: Court ruling could hurt support
for tribal casinos (4/29)
Editorial:
California tribes can't get free ride on casinos (4/26)
Editorial: California deserves a share of
tribal revenues (4/26)
Editorial: Appeal decision on tribal
compact negotiation (4/23)
Column: Tribal casino revenues no sure bet
in California (4/23)
Republican
nominees decided compact negotiation case (4/22)
California tribal casino sharing fund
slowly losing money (4/22)
Schwarzenegger to ask for rehearing in
compact lawsuit (4/21)
Rincon
Band wins case on Class III compact negotiation (4/20)
Pauma Band awaits final ruling in gaming
compact case (4/19)
Judge
indicates he might invalidate Pauma casino compact (4/6)
Another California tribe wins case over
slot machine cap (3/31)
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