Tribes weary of giving more casino profit to California

Chris T. Nguyen

Thursday, Jan. 15, 2004 | 9:06 a.m.

PALM SPRINGS, Calif. -- Tribal leaders at an Indian gaming conference said Wednesday they are skeptical about sharing more gaming profit with the state and criticized a ballot initiative that would permit slot machines at racetracks and card clubs.

The chairman of the California Nations Indian Gaming Association said in a speech that tribes are willing to negotiate with the state but noted more than 60 of them already have a 20-year compact that allows them to operate casinos and mandates revenue payments.

"Our relation with nontribal governments should be conducted in the spirit of honesty, openness and when appropriate friendship," Anthony Miranda told about 700 people at the Western Indian Gaming Conference. "We should always conduct ourselves as good neighbors and citizens, willing to listen and to talk but always willing to defend our fundamental beliefs, principles, economic interest and overall cultural identity."

Miranda said the $4 billion generated from Indian casinos is "one bright spot in a dismal economy," referring to California's budget woes. He said tribal casinos have employed more than 40,000 Californians in recent years who generate about $400 million in federal, state and local taxes.

His comments come after Gov. Arnold Schwarzenegger said he wants to collect more gaming revenue from tribes. Schwarzenegger has appointed attorney Daniel Kolkey to re-examine the current compacts and negotiate with tribes, the largest of which are expected to meet with him in the coming weeks.

Though he declined to share details of his strategy, Kolkey said the state doesn't plan to reduce the maximum number of slot machines tribal casinos are allowed to operate, set at 2,000.

Under the approved compacts with 61 tribes, casinos with up to 500 slot machines as of September 1999 are required to pay 7 percent of the average net win to the state. The rate is bumped up to 10 percent for 501 to 1,000 machines, and 13 percent for more than 1,000.

Some tribal members believe they shouldn't be required to give up a larger share of the profits because of the state's economic problems. More profits could be given to the state if officials lift the cap on the maximum number of slot machines, said Toddy Yeats, member of the Barona Band of Mission Indians, a tribe of about 450 members in San Diego County.

Some tribes want the cap on slot machines removed, but their casinos may not be able to handle more than 2,000 machines, said the association's executive director, Jacob Coin. Of more than 50 Indian casinos statewide, he said, only 12 operate the maximum number of machines.

Tribal officials also attacked a ballot initiative that would allow racetracks and card clubs to operate slot machines. The proposed measure would earmark up to $1 billion from gambling profits for police, firefighting and education.

Under current California law, slot machines are permitted only on Indian lands.

The compacts gave that exclusive right to tribes, said Michael Lombardi, spokesman for the Augustine Band of Cahuilla Mission Indians in Riverside County. "There's a deal to be had ... if they respect the agreement we have now," he said.

Lombardi said the Schwarzenegger administration and California citizens have a misconception that tribes are rich. Only about 10 among the state's 107 tribes are wealthy, he said.

For example, the Augustine Casino is still paying off construction costs and won't turn a profit for another six years, Lombardi said.

Miranda said the greatest danger is division among tribes and they have to unite to face challenges from state and local governments.

"The state of our tribal nations is strong ... Our future is in our hands, ours to determine. We must be ever mindful that the actions we take today shape the sovereignty of future generations," he said.