Rincon Tribe Won’t Pay for More Slots

When an Indian tribe wants to bring in slot machines, many times they have to pay the state a set upon amount for those slots. However, some tribes are tired of having to pay for their slots, and one group is doing something about it. The Rincon Indian Band is taking the state of California to court as they say that Governor Schwarzenegger is negotiating in bad faith for their amended slots compact.

Rincon currently operates under a 1999 slots compact which gave them 1,600 slots at its Harrah’s casino just north of Valley Center. They would like to increase their slots to 2,500 but in order to do that they would need to pay the state millions of dollars for their general fund. Their lawyer says that they feel that the state has “stepped over the line” and they aren’t paying for more slots.

They say that the money the governor is asking for is essentially a tax, and that it is illegal for the state to charge them tax for slots under the 1988 Indian Gaming Regulatory Act. The state says that the payment is not a tax and that it is legal because in return for it, the tribe gets more slots – as well as the exclusive right to offer casino gambling within the state of California.

The state says that they are looking at what is the best interest for the tribe, the community and the state. They say that the tribe made more than $242 million from the slots that they have from California residents, and therefore they need to share the wealth. They are looking to change the way slots compacts are written across the country, and experts say that they have an uphill battle ahead of them.

The tribe says that per the constitution they are entitled to the slots and they aren’t going to pay for them. The case goes to court soon, and the governor is asking it to be thrown out. Experts say that if it isn’t, there is a good chance that if they win they will lose the right to exclusivity in the state.

Back to August 2007 Archive.