Monday, April 27, 1998 | 9:10 a.m.
The endorsement of the first state-sanctioned Indian casino in California was signed Saturday by Kevin Gover, assistant secretary for Indian Affairs under Interior Secretary Bruce Babbitt.
The pact marked the first time an American Indian tribe has agreed to state conditions in the operation of its casino, sparking criticisms from those who say the governor has no authority to negotiate with tribes.
The controversial compact between Gov. Pete Wilson and the Pala Band of Mission Indians allows the San Diego County tribe to open a reservation casino.
With the Pala compact now formally approved, the U.S. Justice Department may move to shut down gambling operations of tribes that have not begun compact negotiations.
Other tribes have been operating casinos without state approval for years. They claim the Pala pact is overly restrictive, infringes on Indian sovereignty and could reduce profits at casinos built around hundreds of video poker and slot machines, which are the biggest moneymakers.
The U.S. Department of Justice issued an ultimatum last month that those tribes either agree to the terms of the Pala pact or have the plugs pulled on their illegal slot machines in July.
Two tribes went to federal court Friday but failed to convince a U.S. District judge in Washington, D.C., to block the Interior Department from signing the Pala accord. In going ahead with the endorsement, the Interior Department rejected arguments that the compact was illegal.
Under the Pala model, video poker, slot machines and some other games would be replaced by new video machines that play high-tech - and near instantaneous - versions of the California lottery. Tribal leaders have expressed fear the new games will not be as popular.
Another sore point is the limit on the number of machines each tribe can operate.
Tribes opposing the pact have vowed to continue their fight in court while pursuing a referendum for the November ballot that would legalize the kind of gambling they now offer - without the approval of federal or state officials.
Tribes in California can operate bingo halls and poker parlors without outside approval, but under federal law they can open high-stakes casinos only under compacts negotiated with the state.
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