Schwarzenegger Gives California Casinos a BoostPublished July 29, 2004 by OCR Editor
Arnold Schwarzenegger, known for his action/adventures movies, was elected to become Governor of California last year. He has recently signed a legalized casino deal with 5 of the state's largest Native American communities that is estimated to bring in
Gov. Arnold Schwarzenegger signed new Indian gambling compacts with representatives from five of California's largest Native American tribes in a deal that's estimated to bring in at least $1 billion for the current state budget and annual payments in the future of between $150 million and $200 million a year.
In California, Governor Arnold Schwarzenegger has formed a new accord with Native American tribes within the state regarding expansion of their legalized gambling casinos. The agreements have been signed with the five main tribes, and now allow unlimited increases in the number of slot machines available in their land-based casinos.
Prior to this agreement there was a maximum limit for each tribe of 2000 machines per casino. This set maximum is being abolished and a negotiation was forged in exchange for financial compensation paid to the government by each of the 5 tribes. One of Governor Schwarzenegger's election promises was to arrange greater payments of casino profits by tribes, as part of an effort to address the state's large and growing budget deficits problem. According to this new agreement, the demand is that the tribes contribute US$1billion this year to the government, and then US$250 million every year after that until 2030.
Although this new agreement has been reached with five of the state's tribes, Schwarzenegger's ultimate goal is to achieve similar deals with around twelve tribes in total. Currently however, this does not look clear-cut, as there are tribes who are resistant to such amendments to current procedures. Two tribes are presently sponsoring ballot measures as a way for trying to negotiate their own terms.
One tribe, the Aqua Caliente Band of Cahuilla Indians is proposing an expansion in Indian gaming in return for contributions to the state of 8.8percent of tribal net income. Another proposal is that tribes will pay 25 percent tax, on the condition that card rooms and racetracks would also be allowed to operate slot machines. Governor Schwarzenegger is not thrilled with either of these two options, so there is more negotiating to be done, before his goal of co-operation with twelve tribes can be achieved.