Tribes in Hot Water with Schwarzenegger over Slots Revenue

Just weeks after extending an olive branch to the state's most powerful Indian tribes, Gov. Arnold Schwarzenegger is threatening to try to shut down six of their casinos, including two of the largest in San Diego County, in a dispute over how their slot machine numbers are tallied.

In a letter this month from his top lawyer, Schwarzenegger rejected a proposed compromise from Sycuan, Barona and four other tribes, warning he would seek a court order to revoke their casino gambling compacts unless they remove the machines in question or tally them as the state insists.

The move has tribal officials questioning why Schwarzenegger would launch what could be a major battle over a device that, as of now, accounts for a small of California's $7 billion Indian gaming industry.

"Why would the governor meet with you and two weeks later stick a dagger in your chest?" asked Michael Lombardi, gaming commissioner for Riverside County's Augustine tribe, one of many that have clashed with the state in the slot-count debate.

Schnur said that most big-gaming tribes, even those involved in the slot-count dispute, might have more to gain than to lose with Schwarzenegger in the mutual goal of keeping Indian casinos out of urban areas. He added he wouldn't be surprised if some tribes fighting the governor wind up signing revised compacts with him to get more slots.

"The debate over tribal gaming is not likely to be a major issue in this election to most voters," he said, "but it's obviously very important to the tribes."

June 30, 2006
Posted By Susan Torres
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