CA: Gov. to Pave Way for Third Palm Springs Area Casino

Los Angeles Times ^ | August 7, 2006 | Dan Morain

[calcowgirl]

SACRAMENTO -- 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.

(snip)

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.

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.

[gondramB]

Considering all the California money that winds up in Vegas its hard to blame him...

[Amerigomag]

The CAGOP way:

1) Increase taxation to expand state spending
2) Borrow to increase state spending and defer taxes to the next generation.
3) Enter the gambling business as a partner to expand state spending
4) Never, ever reduce state spending, even when there are insufficient revenues.