Governor Signs Slot Machine Compacts

The slot machine compacts that Governor Schwarzenegger signed Tuesday will have a large influence on the gaming industry in California. Four of the state’s richest tribes are now going to be able to double or triple the number of slot machines that they currently have, and in exchange will pay the state of California hundreds of millions of dollars in slot machine taxes and revenue.

The signing of the slot machine compacts by the governor was not a surprise, but it was an end to an ongoing battle between the labor unions and the tribes, with the win going to the tribes. The unions had not wanted the slot machine compacts signed, and Democrats had held up the bills for almost a year stating that the unions were unable to protect workers or get them to organize in the tribal casinos.

However, Democrats finally caved and signed the bills, stating that they did so because the tribes had agreed to certain provisions that would allow the state to more closely monitor whether or not the tribes were paying the amount of slot machine revenue that was actually due.

The unions have threatened to block the expansions by getting signatures for a ballot measure, but so far have not organized to that effect. The Sycuan Band of the Kumeyaay Nation in San Diego; the Pechanga Band of Luiseno Indians in Temecula; the Agua Caliente Band of Cahuilla Indians in Palm Springs; and the Morongo Band of Mission Indians in Cabazon were all approved for additional slot machines.

With the new deals, the tribes will be able to bring in almost 17,000 more slot machines and table games into the state, while holding onto their exclusivity deal to offer the slot machines. The Yurok tribe got permission to install 99 slot machines at the reservation, which is great because they are the state’s poorest tribe and this should help them with their debt issues.

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