DKSuddeth
Senior Member
new gaming compacts
SACRAMENTO Gov. Arnold Schwarzenegger signed new Indian gambling compacts with representatives of five California tribes Monday in a deal that's estimated to bring in at least $1 billion for the current budget and annual payments afterward of at least $250 million a year.
The new deal also allows the tribes to increase their casinos' number of slot machines beyond the current 2,000-per-tribe cap. Those extra machines are expected to help pay the $1 billion this year and the annual payments until 2030.
To pay the money to the state, the tribes will sell bonds that will generate the $1 billion and then the annual payments for 18 years, until the bonds are paid off. Then the tribes will make direct payments to the state until the end of the compact period.
The agreement also allows Schwarzenegger to fulfill a campaign promise to have tribes pay a greater share of their income to the state.
Schwarzenegger's budget plan incorporates the higher fees from tribes with casinos, and administration officials have said much of the money will go to repay money borrowed from the transportation trust fund.
SACRAMENTO Gov. Arnold Schwarzenegger signed new Indian gambling compacts with representatives of five California tribes Monday in a deal that's estimated to bring in at least $1 billion for the current budget and annual payments afterward of at least $250 million a year.
The new deal also allows the tribes to increase their casinos' number of slot machines beyond the current 2,000-per-tribe cap. Those extra machines are expected to help pay the $1 billion this year and the annual payments until 2030.
To pay the money to the state, the tribes will sell bonds that will generate the $1 billion and then the annual payments for 18 years, until the bonds are paid off. Then the tribes will make direct payments to the state until the end of the compact period.
The agreement also allows Schwarzenegger to fulfill a campaign promise to have tribes pay a greater share of their income to the state.
Schwarzenegger's budget plan incorporates the higher fees from tribes with casinos, and administration officials have said much of the money will go to repay money borrowed from the transportation trust fund.
