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Editorial: Tribes put their chips on Brown and Whitman

Published: Tuesday, Oct. 26, 2010 Sacramento Bee

For all their palaver about jobs, Democrat Jerry Brown and Republican Meg Whitman ignore public talk about a growing industry that generates $7 billion-plus annually.

Soon after taking the oath of office, however, the next governor will face weighty issues presented by California Indian tribes that own casinos and hope to renegotiate compacts with the state. Tribes that aspire to own Las Vegas-style casinos will want a place at the bargaining table.

Brown is no neophyte to the world of gambling and its regulation. As attorney general, he oversaw card rooms. But neither he nor Whitman has discussed the topic in any detail on the campaign trail.

The gambling industry spent $48 million lobbying in Sacramento during the first decade of this century. During that period, Indian casinos and some tribes and investors became rich, while counties and residents of certain rural areas faced traffic, environmental stress and social costs.
There is no turning back. Expansion will continue.

The Department of Interior recently created reservation land in Sonoma County, and the Federated Indians of Graton Rancheria undoubtedly will be seeking a compact soon. There also could be a casino on the shore of San Francisco Bay in Richmond, and various tribes are seeking new casinos in the Central Valley.
Tribes are sovereign. Under the deals they negotiated with Gov. Gray Davis, they ceded little authority to the state to oversee their operations.

Although those compacts expire in 2020, some tribes seek the security provided by an extension. In the give and take, the next governor could seek concessions and more money to defray casino-related costs, as Gov. Arnold Schwarzenegger has done.

Under Schwarzenegger, tribes including owners of the Cache Creek and Thunder Valley casinos gained the right to unlimited expansion in exchange for making payments to the state.

Whether the next governor can ensure those payments remains to be seen. The Obama administration, through its Interior Department, recently rejected a Schwarzenegger administration deal with one tribe, saying payments sought by the state were too high.
The next governor will have to decide how to proceed on that issue.

Another issue awaiting the next governor is whether to legalize Internet gambling within California's boundaries. When The Bee asked Whitman about her views on Internet gambling, she said she had not studied it. When Brown was asked, he said he doubted Internet gambling could be stopped. Given that reality, he said there ought to be a way for the state to collect some money from it.

Other questions remain unanswered. Do Brown and Whitman believe tribes should pay into the state's general fund in exchange for the monopoly right to operate Las Vegas-style casinos? Brown's aides decline to answer, noting the attorney general's deputies are litigating that very issue. When Whitman was asked about it, she did not have an answer.

Tribes are investing in Brown by contributing almost $1 million to his campaign. Unlike Schwarzenegger, Whitman accepts tribes' donations, more than $200,000. Tribes would not be donating money unless they believed they would be treated well by the next administration.

The state's role in gambling may seem like a side issue. But how the next governor confronts those issues will impact our state for decades to come. Certainly, interests involved in gambling are keenly aware of its significance.

 

 


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