Aqua Caliente Deal Problems

The Aqua Caliente deal was not approved as expected its first day out of the gate. Lawmakers met in a session that lasted five hours, and did not end in a vote. There are concerns about the compact, one of the major ones being an exclusivity clause that ended up being removed all together. The racetracks want the right to try and get slot machines in as well, and that clause would have forbidden them from doing so.  There was also a representative from the city of Rancho Mirage in attendance, who asked the committee to hold on the approval. The Mayor of Rancho Mirage said, “It needs modification to protect the cities, which can be, and are often negatively impacted by casino development…In our view, a fast-track is not an appropriate process for a pact agreement with a tribe that would extend its gaming agreement another 10 years."  

Others had concerns about the amount of money that the tribe was supposed to bring into the state. They wanted to see how the amount was arrived at – and where were all of these slot machines that they were planning on bringing in. They wanted to know if the tribe already had the slot machines sitting somewhere and were just waiting to put them into play, at which the tribe assured lawmakers that they did not have any such slot machine stockpile. The tribe does want to get as many as they can up and running however, as the funds from those slot machines will help to fund the new casino that they are planning on building in 2013.  

The money that would be generated from the slot machines would do much to help California. They are guaranteed $23.4 million annually through 2030 – and that is based on the 2,000 slot machines the tribe already has. When they add more, the amount should raise accordingly.

 

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