Media Room > Casino News
Schwarzenegger Criticized In Casino Debate
California governor, Arnold Schwarzenegger is being criticized by the Rincon Indian tribe over a casino expansion debate. The tribe has already been challenging a practice in which the state asks for cash when Native American groups wish to open or expand casinos. They believe Schwarzenegger has been haggling in bad faith for an amended compact to the established practice.
Rincon’s Harrah’s casino wants to increase their numbers of slot machines from 1,600 to 2,500. Under existing conditions, they can't go ahead with their plan without striking a new deal with Schwarzenegger, who has demanded millions of dollars for the state's general fund.
The heated debated which has ensued has left both sides predictably agitated. The tribe believes the contribution the governor wants is effectively a tax, and that's outlawed by the 1988 Indian Gaming Regulatory Act.
Conversely, state officials say such payments are legal because the tribe gets something in return -- more slot machines and the exclusive right to offer casino gambling in the state.
The tribe countered that it is entitled to more slot machines. It said the exclusive right to gambling is already in the state constitution, so that's not something it should bargain for.
Schwarzenegger is asking the judge to discard the case altogether, while the tribe wants the judge to find that the governor has negotiated in bad faith and that a mediator should choose between the last offers from both sides.















