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Californians Face Vote on Indian Casino Expansions

As often is the case in the gambling world, it has become a case of the rich fighting the rich over who gets to get richer.

Play Now at Slots Plus Casino! February 5th is Super Tuesday, the day 22 states will vote in Democratic and Republican primaries to decide Presidential candidates. It is also an extremely important voting day in California, as voters will decide whether to approve four measures that would a group of Indian tribes to more than double their slot operations, from an existing 2000 slot machines per tribe to a new combined total of 17,000.

The Pechanga, Agua Caliente, Sycuan, and Morongo tribes argue that increasing the numbers of slots will help the state as much as the tribe. The nonpartisan Legislative Analyst's Office has found that, if approved, the new machines would generate $200 million for California's cash-strapped budget per year.

However, opponents charge that the amount of revenue would be insignificant next to the state's $100 billion budget and expected $14 billion shortfall. Arguments have also been made that voters who originally aproved casinos did not anticipate a rapid growth and expansion of existing facilities.

As often is the case in the gambling world, it has become a case of the rich fighting the rich over who gets to get richer. The two sides have between them spent $100 million on ad campaigns. The tribes involved are among the most wealthy and politically influential in the country. Even the Department of the Interior, despite its repeated and desperate attempts to block Indian casinos, conveniently lost paperwork on the California proposals until they were automatically approved by time constraints.

The opponents are largely made up of special interests looking to avoid increased competition. Terry Fancher, a vocal leader of the "vote no" group, is involved in ownership of the Las Vegas Sahara Casino and the Hollywood Park and Bay Meadow racetracks. The Pala Tribe, which has voiced opposition, is in direct competition with the Pechanga. 

Perhaps the decision should come down to what is best for the state, rather than either group. Since the state currently receives no money from the tribes for their current operations, it seems obvious an expansion that allows the state to benefit in revenue from both new and old slots would be reasonable and sensible.

Published on January 27, 2008 by Joshua McCarthy

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Recent Comments

Posted by: Original PechangaWhen: 01/27/2008 06:08:14 PM EST
Joshua,

Unfortunately, there are some mistakes in your analyis.

The tribes are promising $9 billion to the state. Their first commercials made it seem that we would get the $9 billion the first year, then they had to admit it was over 23 years.

For the tribes to "give" the state $9 billion, they will take in $36 billion for all 1800 of their members. That's 9 for 33 MILLION and 36 for 18 HUNDRED.

In my math 200 million per year over 23 years is $4.6 billion, NOT $9 Billion.

These are simply flawed compacts and we can do much better in California. The tribes have a monopoly and it's designed to stay that way. IF CA allows slots elsewhere, the tribe can reduce it's payments.

Californians need to vote NO. This will NOT stop gaming in CA, it will simply allow the 4 tribes to continue to make HUNDREDS OF MILLIONS OF DOLLARS.

In Pechanga's case, the members are getting $40,000 per month, that has gone up, since Pechanga termineated 25% of the Indians in their tribe. They simply SHOULD NOT be rewarded.

MY blog http://originalpechanga.blogspot.com is discussing the issues. I URGE your California readers to stop by.

Posted by: Joshua McCarthyWhen: 01/28/2008 03:54:45 PM EST
Thanks for your input. Still, it seems that the tribes (with 8000 machines) are earning about half of what 17,000 machines would generate. Using your numbers, if "no" votes win, the tribes would take in a little under half of the $36 billion you cite, let's say $17 billion, of which the state gets none. Or the state can approve new machines, and the tribes will get another $10 billion on top, and the state $9 billion, resulting in an almost even split on the new income.
Also, the $200 million per year i quoted was not the tribes' optimistic forecast, but that of a neutral state accounting office; i used this figure because it seemed likely to be most realistic.
I have also written on the unequal treatment the four tribes have received from the federal government, giving them distinct advantages over less fortunate tribes. http://www.onlinecasinoadvisory.com/casino-news/land/interior-department-casino-corruption-1364.htm
So, my point was that, given that the tribes are already making a fortune, it might be in the best interest of the state to grant a few more machines that will be taxed at close to 50%, as the old ones aren't taxed at all.
Posted by: SanMarcos PassWhen: 01/28/2008 11:07:04 PM EST
California gamblers will first have to lose 60 BILLION dollars for the state to collect anything - and it won't be 9 billion. Then factor in $3 - $5 in social costs for taxpayers for every $1 of casino revenue. This is why the tribes have to spend mega millions to convince you its a good deal. If it REALLY was no one would be fighting it.

VOTE NO on 94 - 97

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