Schwarzenegger fights changes to federal act

Don Thompson

Wednesday, March 24, 2004 | 8:51 a.m.

SACRAMENTO -- Congress should retain state limits on a new class of gambling machines that, if unregulated, would severely hurt California's chances to renegotiate tribal casino compacts and demand a share of gaming profits, Gov. Arnold Schwarzenegger said Tuesday.

Proposed amendments to the Indian Gaming Regulatory Act pending in the U.S. Senate "shift the balance unfairly in favor of the Indian tribes and undermines the ability of the state to adequately protect its own citizens from the adverse consequences of tribal gaming," Schwarzenegger wrote to members of the Senate Committee on Indian Affairs to express his "extreme opposition" to the legislation.

He particularly objected to letting tribes operate a new class of gambling machines without requiring them to first negotiate a compact with states. Schwarzenegger is trying to renegotiate the 20-year compacts signed by his predecessor, holding out the possibility of letting tribes operate more slot machines in return for a state share of the profit.

"This bill would subject states to the widespread operation of sophisticated gambling devices" with no state regulation, Schwarzenegger wrote.

Officials of the California Nations Indian Gaming Association did not return telephone messages from the Associated Press when the governor's office released the letter after normal business hours.

Schwarzenegger also objected to proposed restrictions on revenue sharing between tribes and state and local governments, an issue he said should be left to state and tribal negotiators.

"The sole purpose of this amendment appears to be to limit the ability of the state to ensure its fair share of the revenue generated by the tribes gaming operations to adequately offset impacts of tribal gaming of the state and its citizens," Schwarzenegger wrote.

He ran for election last fall in part by promising to make tribes pay their "fair share" to the state's budget, which earned him opposition from many tribes.

Finally, the bill would allow regulation of slot machines by the National Indian Gaming Commission instead of by states, but asserts that tribes themselves "retain primary jurisdiction" over slot machines operation.

That undermines existing law giving states and tribes jurisdiction over slot machines, Schwarzenegger contended.