In California it seems a deal that would allow a third casino for the Agua Caliente Band of Cahuilla Indians may be imminent. The deal, if signed, would give the tribe up to 5,000 slot machines – they presently have 2,000 – in exchange for rewriting the compact that now gives California nearly US$14 million a year. The expected increase outlined in the new compact would take the tribe’s annual payments to over US$81 million until 2030. It may seem a huge jump but still represents only 15% of estimated profits on the additional machines.

In 2005 tribal gaming in California accounted to a 31.5% share of the US$23 billion industry. The state claims the largest number of US gamblers, Who make more frequent visits to casinos than gamblers in other states. Gaming revenue was US$7.2 billion in California last year. The Cahuilla Indians are native to the Palm Springs area but in 1876 were confined by the Federal Government to 52,000 acres of land deeded in trust. Around 6,700 acres now lie within Palm Springs city limits. The tribe has attained considerable political influence and lobbies hard to promote its interests. It appears that a new compact would not contain the pro-labour clauses wanted by the Unions.

The tribe’s Agua Caliente Casino with 46 gaming tables and 1,000 gaming machines is in the Coachella Valley at Rancho Mirage. The Spa Resort Casino with hotel and spa facilities is in Palm Springs and has 30 gaming tables and over 900 gaming machines. The third casino would also be in the Palm Springs area if the negotiations reach a successful conclusion. Other tribes in California are in ongoing talks that could lead to further expansion of gambling in the state. All compacts must be approved by the Legislature.
(E-08.08.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage