California’s Governor, Arnold Schwarzenegger, maintains that slots licences granted yesterday by the California Gambling Control Commission will be invalidated. In a federal lawsuit brought by the Colusa Indian band in Northern California the judge ruled in August in favour of the tribe and ordered the state to issue additional slots licences. An Appeals Court last week rejected a request by the state for a stay of judgement.

A further appeal is sure to be made by state lawyers as the ruling will hinder compact negotiations with the tribes intended to provide more revenue for the state. The Colusa tribe had claimed that a provision in the 1999 gaming compact had incorrectly limited the number of licences available throughout the state. In August the state was ordered to issue up to 10,549 additional licences. Yesterday 11 tribes received a total of 3,548 licences.

Two casinos that will take advantage of the new licences are Valley View Casino and Harrah’s Rincon Casino. Valley View will add 428 gaming machines to its newly expanded gaming floor. Harrah’s Rincon will add up to 400 new machines but not immediately. The extra slots will bring both casinos to the maximum 2000 permitted under the 1999 compact. Some other Californian tribes, with compacts negotiated more recently, may operate unlimited numbers of slots. (E-10.06.09)

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