California Senate approves compacts

22,500 MORE SLOT MACHINES

Despite strong opposition from labour unions and horseracing bodies, the Californian Senate yesterday approved a number of bills that will allow tribes in southern California to add up to 22,500 new slot machines. A bill to grant the Yurok Tribe the right to operate 99 slot machines at a tribal lodge met no opposition at all, after previous failures. Any opposition to the other bills was defeated but they will now move to the state Assembly where some legislators support the labour unions, which want union representation to be part of the compacts.

Five tribes, apart from the Yurok in Del Norte County, are negotiating compacts: 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. Californian Governor Arnold Schwarzenegger has been trying to get the compacts approved in order to add as much as US$22 billion to the state finances over the 30-year term negotiated. In return for revenue sharing the tribes would be able to expand their operations.

This huge expansion of gambling in California, if the compacts get final approval, is opposed by the horseracing industry. Racing in the state, as in many places both within the US and beyond, is suffering a decline in visitor numbers. Competition from other forms of gambling has led to the widespread development of racinos where racing is combined with the operation of electronic gaming machines. The compacts in California would mean around a 50% increase in the five tribes’ slot machines. (E-04.20.07)

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