Wednesday, July 2, 2008

Schwarzeneggers Bad Faith Negotiations Could Lead to Unbridled Gaming in CA

While a Federal Judge won't force our Governor and the Rincon Tribe back into negotiations, it appears that California could be on the brink of unbridled gaming.

It appears Mr. Schwarzeneggers's tax the tribes EXTRA plan may be illegal. We already knew it was overly optimistic, but illegal?

Read the story here: Union Tribune

The judge agreed that by asking for general-fund contributions, the state was essentially trying to tax the tribe. As a sovereign government, the tribe doesn't have to pay state taxes.
The judge also said that because voters already gave Indian tribes a monopoly on Nevada-style gambling in California, the state couldn't demand money in exchange for approving the expansion.
State officials said that if Rincon wins, it could lead to an unbridled expansion in gambling.

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