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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