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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