Davis has signed individual compacts with 62 tribes, some of which have no casinos. The agreements permit them to operate a maximum of 2,000 slot machines at any one casino. The machines are the most lucrative form of gambling for casino operators.
Gaming industry experts estimate that Indian casinos in the state will generate revenue of about $5 billion this year, up from about $1.4 billion in 2000.
This ranks California as the second-largest gambling state in the nation, behind Nevada's $9.3 billion in casino revenue. Experts said California will probably become No. 1 within a few years. Nevada gambling revenue is expected to remain steady or even decline, while California Indian casinos continue a rapid expansion.
Early today the Santa Ynez Band unveiled its $150-million Chumash Casino expansion north of Santa Barbara. In Riverside County, the Agua Caliente Band of Cahuilla Indians is building a $90-million casino on reservation land in downtown Palm Springs that is scheduled to open this fall.
About 15 miles away, the Morongo Band of Mission Indians is constructing a 309-foot-tall resort hotel between scenic peaks in the San Gorgonio Pass.
In June, the once-impoverished United Auburn Indian Community opened a $200-million casino in suburban Sacramento. On opening day, traffic backed up eight miles.
Many of those facilities are approaching a Vegas-style experience by offering upscale dining, shopping and entertainment. Jay Leno is scheduled to appear at a private VIP party celebrating the opening of the Chumash Casino this week.
Amid all the expansion, tribes are renegotiating their existing 20-year compacts with Davis, who is asking for a share of casino profits to help ease the state's budget crisis. The original agreements negotiated by Davis did not include payments to the California treasury similar to the shares of casino proceeds that go to Nevada, New Jersey, Connecticut and other states.
Tribal leaders were angered earlier this year when Davis began renegotiations by saying he wanted $1.5 billion in gaming revenues in exchange for lifting the cap on slot machines. The governor has since lowered that demand to $680 million for this year.
Bustamante, for one, said this month that he would support a proposal by Anthony Pico, chairman of the Viejas Band of Kumeyaay Mission Indians, that tribes pay taxes at the same level as other corporations. That amount would be far less than the $680 million that Davis has been seeking.
