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Gov. to Pave Way for Third Palm Springs Area Casino
 Message was posted: 01:28 Aug 8th, 2006     
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Casino news from http://www.latimes.com/


Gov. Arnold Schwarzenegger plans to announce a deal Tuesday to permit one of the state's richest tribes to open a third casino in the Palm Springs area, a pact that could open a new round of gambling expansion in California.

Top Schwarzenegger administration officials said today that the governor and the Agua Caliente Band of Cahuilla Indians are expected to sign a deal that would permit the tribe to have up to 5,000 slot machines. The tribe, which in recent years has been one of the governor's main antagonists, is currently authorized to have 2,000 slot machines in its two casinos.

Administration officials spoke on the condition that they not be identified, noting that the deal remains unsigned. But the tribe's representative said there is agreement.

"The tribe would not be signing a deal tomorrow if we weren't happy with this," said Nancy Conrad, Agua Caliente's press secretary. "I think it is a good deal on several different fronts."

The administration and several other tribes are in separate talks that could result in other deals in coming days or weeks. All gambling compacts require ratification by the Legislature.

Agua is among the most politically active tribes in the nation, having spent $17 million on state campaigns since 2004. By striking a deal with Agua, Schwarzenegger may be ensuring that the band will not spend any of its millions to unseat him in the November election.

Under Agua's new arrangement, the group would increase the payments it makes to the state for its slot machines by several million dollars annually, paying $23.4 million, up from the current $11.9 million. Additionally, the tribe would pay 15% of the net winnings from slot machines added to its existing 2,000.

Those payments could amount to $58.5 million a year if the tribe adds 3,000 new machines, administration officials estimate.

Agua also would be expected to bargain with local governments to mitigate the effects of any new casino operations.

The deal comes less than two years after Agua spent $13.7 million campaigning unsuccessfully for Proposition 70, an initiative that would have allowed the tribe unlimited gambling on its land. Schwarzenegger campaigned against the initiative, saying he should be allowed to strike bargains with the state's Indian tribes.

During the 2003 recall campaign, candidate Schwarzenegger repeatedly called on tribes to pay their "fair share" to the state, a number he suggested would be 25% of their winnings.





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