Gov., Tribe in Talks Over Slots, 3rd Casino
SACRAMENTO — Gov. Arnold Schwarzenegger plans to announce a deal today to permit one of the state's richest tribes to open a third casino in the Palm Springs area, a pact that could open a new round of gambling expansion in California.
Top Schwarzenegger administration officials said Monday that the governor and the Agua Caliente Band of Cahuilla Indians were expected to sign a deal that would permit the tribe to have up to 5,000 slot machines.
The Palm Springs-based tribe, which in recent years has been one of the governor's main antagonists, currently is authorized to have a total of 2,000 slot machines in its two casinos.
Administration officials spoke on the condition that they not be identified, noting that the deal remained unsigned and negotiations were confidential.
But the tribe's representative acknowledged that there was a tentative agreement.
"The tribe would not be signing a deal
The administration and several other tribes are in talks that could result in additional deals. All gambling compacts require ratification by the Legislature.
Agua Caliente, among the most politically active tribes in the nation, has spent $17 million on state campaigns since 2004. By striking a deal with Agua Caliente, Schwarzenegger may be ensuring that the band will not spend any of its millions to unseat him in November.
"I would imagine that had something to do with his thinking," said Alison Harvey, executive director of the California Tribal Business Alliance, a consortium mainly of tribes that struck compacts with Schwarzenegger in 2004.
And Agua Caliente leaders "could be thinking he was more prepared to deal," Harvey said.
The arrangement would require that Agua Caliente increase the payments it makes to the state to $81.9 million a year, up from the roughly $14 million it now pays. The compact would remain in place until 2030. The payments would come in two chunks:
* The tribe would pay $23.4 million annually on its existing 2,000 machines. The payment represents 10% of the tribe's profit from slot machines in 2004 and 9% in 2005, administration officials said. That means the tribe earned roughly $234 million from slots in 2004 and about $260 million in 2005.
* The tribe would pay 15% of its profits on the additional 3,000 slots -- or $58.5 million, based on estimates that the tribe would earn $390 million a year on the 3,000 new machines.
