California Could Lose Expansion on Three New State Casinos

Some groups are trying hard to not only stop California casino expansion, they actually want to reverse the progress.

Big Labor has pushed measures attempting to challenge recently signed compacts between California and several Indian tribes onto the ballot later this winter.

Despite a potential $9 billion windfall for the state over the course of the compacts, UNITE HERE, a union of casino workers and employees, is upset that the newly-reached deals do not include adjustments to the collective bargaining agreement that would make it easier to organize industry employees.

Governor Arnold Schwarzenegger agreed to give the Pechanga and Morongo tribes triple the number of existing slot machines, and double to the Sycuan and Agua Caliente tribes, in exchange for higher payments on the machines already negotiated by Schwarzenegger’s predecessor, Gray Davis, as well as revenues as high as 25%on the additional machines.

The new agreement also contains clauses designed to provide increased protection for customers and workers, and is even seen as more environment-friendly. The money received via the new compacts would help California find its way out of a looming budget deficit.

Players leaving the existing casinos were all for the expansion, citing overcrowding as a sign the people of the state were ready for more machines to be installed. One said, “ Certain special interests, like the track owners, might fight these deals, but in the long run all of California will be the better for them.”