Will There Be a Major Gaming Expansion in California?

California lawmakers return from spring recess and on Tuesday will begin to consider a major expansion of casino-style gaming through proposed compacts that could change the political and economic fortunes of many throughout the state.

The compacts, if approved, would triple the number of slot machines from 10,000 to 32,500 for the Agua Caliente Band of Cahuilla Indians, the Morongo Band of Mission Indians, the Pechanga Band of Luiseno Indians, the San Manuel Band of Mission Indians, and the Sycuan Band of the Kumeyaay Nation.

At stake are the political fortunes of Gov. Arnold Schwarzenegger, who struck the compact deals with five highly successful southern California tribes, Democratic and Republican state legislators whose constituents have strong preferences one way or the other on the proposed compacts, and tribes throughout the state who have tethered lobbying efforts and political contributions to the compacts’ success.

Also at stake are the economic fortunes of the state, expected to take in as much as $500 million annually in revenue sharing – what Schwarzenegger has long-called its “fair share” of gaming profits, localities in which hundreds or even thousands of new jobs would be generated for non-tribal members and, of course, the gaming tribes and their members.

Of concern to some is that the proposed compacts don’t require an independent audit of tribal books, account for a potential regulatory hole created by an October 2006 federal appeals court’s decision that the National Indian Gaming Commission lacked regulatory authority over most casino-style gaming, or provide protections similar to those in several 2004 compacts negotiated by Schwarzenegger for workers attempting to unionize.

This is going to be an intriguing case study of how influential state politics can be in setting the terms of tribal gaming – and how willing tribes are to give in return for get.

Click here for April 8th L.A. Times coverage.