California Slot Machine Issues

There are laws and propositions in place to keep the Indian tribes of California from being allowed too many slot machines, and if they want to operate the slot machines they have to sign a compact with the state of California. The original compact allowed the tribes no more than 2,000 slot machines per tribe.

Plus, because the state also said that slot machines and gaming would be limited to tribal lands, they now had a monopoly on the slot machine industry in California. Because of the deal, they had to give the state a portion of the revenue that was garnered from the slot machines, as well as giving some to non gaming tribes.

However, five tribes have renegotiated the original deal, and now they have the right to sue to prevent non-Indian casinos from operating slot machines in their areas. They also have to pay the state a minimum of $100 million a year for 18 years for that right.

Non Indian casinos are allowed non banking games and poker, but no slot machines, which is why some within the state of California are now trying to get the previous rulings overturned. California Commerce Casino recently tried suing the state saying that the monopoly that the state had given the tribes over slot machines was unconstitutional.

However, the Court of Appeals ruled that the statute of limitations had run out on the case, citing that the slot machine compacts only had 60 days for someone to challenge them. Therefore, the court ruled, the compacts would stay as they were, as would any legislation pertaining to them.

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