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Schwarzenegger Estimating Slot Machines
Too High
Governor Arnold Schwarzenegger says that
he thinks the slot machines from the
tribes are going to bring in $506
million in revenue. Experts say that the
slot machine revenue figure is too high
and that he is reaching when he makes
these estimates. According to
Legislative Analyst Elizabeth Hill, not
only have the pending slot machine
contracts not been approved, but she
feels the governor has overestimated the
slot machine revenue by about $300
million.
The governor said that he believes once
the slot machine compacts are signed
with the five tribes, that they will be
looking at an additional income of half
a billion dollars. The Aqua Caliente
Band of Cahuilla Indians and the Morongo
Band of Mission Indians are waiting to
hear if their slot machine compacts will
be signed, as they both want to add more
slot machines to their existing casinos.
Because of a conflict over collective
bargaining however, the slot machine
compacts have not been approved and they
need to be renegotiated with
Schwarzenegger. If the compacts are
approved, they would add 22,500 new slot
machines and those numbers just don’t
add up. Hill said that for them to even
get close to those numbers, the compacts
would have to be signed yesterday, and
the casinos would have to double their
slot machine revenue within six months.
The governor’s office said that the
compacts are ready to go, and as soon as
they are signed the tribes are ready to
move the new slot machines in. They say
that they are just waiting on the
legislature to sign the slot machine
compacts and then they can start
bringing in additional revenue. His
office also mentioned that the tribe’s
revised compact calls for them to pay a
flat $23.4 million a year even if no
more slot machines are added.
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