Californian Governor Arnold Schwarzenegger and Indian gambling tribes are close to completing a much anticipated deal that could provide the state $1 billion in new revenue this year.
Californian Governor, tribes close to $1 billion gambling agreement
Californian Governor Arnold Schwarzenegger and Indian gambling tribes are close to completing a much anticipated deal that could provide the state $1 billion in new revenue this year, Associated Press reported, quoted by www.sanluisobispo.com.
Schwarzenegger said Tuesday the agreement is imminent between four tribes, and he expects several others to join soon. He declined to provide further details, but legislative sources familiar with the negotiations said the deal calls for the tribes to put up an initial cash contribution to the state that will likely be financed through the sale of bonds.
Legislative leaders meeting privately with the governor received a briefing on the agreement but declined to share details.
"I think within a very short period of time we will know much more about that," the governor said at a news conference earlier in the day. "Because the other tribes are now coming in and saying we want to be part of this, we can see that we can work together with you and with the state, and we want to be a partner of yours."
The governor's $103 billion budget plan released last month assumes that tribal gambling enterprises will agree to provide the state with $500 million of ongoing revenues.
The governor's budget also suggests that renegotiated agreements with the tribes will generate a "significant" one-time payout to the state above the $500 million mark.
The San Jose Mercury News and San Francisco Chronicle reported in Wednesday's papers that the deal would generate up to $275 million annually in exchange for the tribes' rights to unlimited expansion and their continued monopoly on casino-style gambling.
The papers said the deals would allow an unlimited number of slot machines at their casinos in exchange for an estimated 15 percent of their profits. There had been a cap of 2,000 machines per tribe.
The deals, which last through 2030, would also preserve tribes' exclusive right to run casinos in California, the papers said.
"If it is four tribes, then we will get a certain amount of money, let's say," he explained. "Then another four tribes come in and that would then double the amount of money. So we can't really tell you exactly what is the amount of money we're going to get, because we don't know yet how many tribes will join."
Sources said the proposed agreement includes the Pala Band of Mission Indians from San Diego County and the United Auburn Indian Community Rumsey Band of Wintun Indians in the Sacramento area.
In exchange for giving the state what Schwarzenegger has termed a "fair share" of the profits, tribes would receive the administration's support to expand casinos by adding additional slot machines beyond the current limit.
