The Obama administration has sided with a California Indian tribe in a case with significant ramifications for the future of tribe-owned casinos and the state's authority to oversee those operations.

It's a shortsighted stand that is not in California's best interests.

Obama's solicitor general submitted a brief urging that the U.S. Supreme Court not review a lower court decision siding with a San Diego-area tribe, the Rincon Band of Luiseño Indians. Rincon sued, claiming that the Schwarzenegger administration overreached when it agreed to grant the tribe more slot machines so long as the tribe would pay what amounted to a tax into the state's general fund.

In a 2-1 decision, the 9th U.S. Circuit Court of Appeals last year sided with Rincon, concluding that federal law does not permit the state to levy such fees, even though the state grants tribes the exclusive rights to operate slot machines in California.

The state appealed. The high court is expected to decide whether to hear the case later this month. It ought to take up the case, though Obama's stand on the issue makes that highly unlikely.

If the appellate court ruling stands, tribes that pay roughly $300 million a year into California's general fund almost surely would reconsider, and tribes seeking state approval to expand their casinos would be under no obligation to make general payments.

The state might be able to persuade tribes to make modest payments to cover direct costs brought about by their casinos, and tribes also might choose to pay for fire trucks, or parks in their areas. But it's one thing to buy a shiny new firetruck, and receive public adulation. It's quite another matter to pay for necessary services that are less than popular, like prisons or state hospitals for mentally ill people.

We understand that tribes could end up with the power to expand their casinos, while paying but a tiny portion of their revenue for matters directly related to their operations.

However, tribes could find that would be a Pyrrhic victory. It could be that commercial gambling interests might ask voters to allow expanded gambling off Indian reservations, in exchange for large payments for state and local government operations. And voters might agree.
The Bee's past stands

"California's 100-plus tribes won the right at the polls in 2000 to a monopoly over Nevada-style casino gambling in California. The state ought have the right to seek payment in return."