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: Legal Pad | LASlot machine cap prompts tribes' suits
By Richard Binder
On multiple fronts, tribes are challenging a California slot machine limit set under 1999 gambling compacts with 61 tribes. While individual tribes were allowed up to 2,000 slot machines, the state imposed a 32,151 statewide limit on the calculation that few tribes had the market capacity for major casinos.
But the California tribal gambling industry exploded from tiny rural casinos to lavish gambling resorts. And Governor Schwarzenegger saw an opening to negotiate new deals ? allowing individual tribes to bypass the state slot cap in exchange for making tens of millions of dollars in payments into California's revenue fund.
The San Pasqual Band of Mission Indians, which currently operates 1,572 slot machines, told Schwarzenegger to forget about any new deal and is demanding that the state pay $550 million in damages for lost casino revenue and breach of contract.
Full post as published by Legal Pad | LA on June 10, 2009 (boomark / email).
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