California forced to pay US$36.2 million for casino deal
A casino deal negotiated by Governor Arnold Schwarzenegger will cost California US$36.2 million after the state lost a legal battle from a Southern Californian tribe.
US.- A casino deal that was negotiated by Governor Arnold Schwarzenegger will cost California US$36.2 million after the state lost a legal battle from a Southern Californian tribe that lasted for years. Gov. Schwarzenegger gave permission to the tribe to add slot machines to Casino Pauma, reserving in return the over-payments from millions of dollars to the General Fund.
The problem between the Pauma Band of Louseño Indians and the state first started more than 10 years ago, when the tribe signed a tribal casino compact to add Vegas-style gambling machines, just like over 60 other California tribes did back in 1999.
However, since the tribe’s first attempt came five years later, the Schwarzenegger administration responded by informing the Pauma Band of Louseño Indians that there were no available slot licenses and thus a new deal must be made. The new agreement was made in 2004, and it stipulated that the annual payment the tribe had to make to the state was US$7.75 million, instead of the US$315,000 previously paid. It was later determined, there were additional 1999 slot licenses at the time, hence a lawsuit was filled claiming that officials intentionally misled them in order to make them pay more.
The decision for the massive re-payment was reached by federal appeals court Judge Richard C. Tallman, who wrote in October, 2015, that the Pauma Band of Louseño Indians had agreed to a much more expensive amendment in 2004 due to misrepresentation. The judge concluded that Pauma was eligible to get back the US$36.2 million in over payments it proceeded to the state, whilst the amendment was to be revoked.
Legislators are expected to act on the Senate Bill 1187 by no later than the 31st of August, the deadline for approving bills. The legislation related to appropriating the money came out near the beginning of the month.
