08/29/2006 GAAS:572:06 FOR IMMEDIATE RELEASE Print Version | Email / Share
Gov. Schwarzenegger Signs Two Amended Compacts Generating Between $7 Billion and $14 Billion to the State, Protects Environment
Gov. Arnold Schwarzenegger announced today the signing of amended compacts with the Pechanga Band of Luiseno Indians and the San Manuel Band of Mission Indians. The two compacts maximize the benefits to the state, protect both patrons and employees, enhance collaboration between local governments and the tribes and provide for environmental mitigations.
“These compacts are a great deal for the state, the tribe and the local communities,” said Gov. Schwarzenegger. “These agreements will provide billions of dollars to the state over the life of the compacts while protecting the environment, local communities, workers and patrons.”
Under the terms of the amended compact with the Pechanga Band of Luiseno Indians, the state will increase its income from the tribe's existing 2,000 slot machines from approximately $27 million to $42.5 million per year. For any additional gaming terminals added as a result of the compact renegotiation, the tribe will pay 15 percent on the first 3,000 additional machines and 25 percent on the next 2,500 additional machines. The maximum number of slots allowed will increase to 7,500. The compact will run through 2030. The tribe has also agreed to pay an annual payment of $2 million to the Revenue Sharing Trust Fund (RSTF). The compact also authorizes the California Gambling Control Commission to direct a portion of the revenue received by the state to the RSTF to ensure that each eligible recipient tribe receives its annual disbursement of $1.1 million.
The Department of Finance estimates that the amended compact with the Pechanga Band of Luiseno Indians will generate more than $7 billion to the state over the life of the compact if the tribe operates all 7,500 machines. Even if the tribe only places 3,000 additional devices into operation for a total of 5,000 machines, it is estimated that the state will receive more than $3.7 billion over the life of the compact.
Under the terms of the amended compact with the San Manuel Band of Mission Indians, the state will increase its income from the tribe's existing 2,000 slot machines from approximately $19.4 million to $45 million per year. For any additional gaming terminals added as a result of the compact renegotiation, the tribe will pay 15 percent on the first 3,000 additional machines and 25 percent on the next 2,500 additional machines. The maximum number of slots allowed will increase to 7,500. The compact will run through 2030. The tribe has also agreed to pay an annual payment of $2 million to the Revenue Sharing Trust Fund (RSTF). The compact also authorizes the California Gambling Control Commission to direct a portion of the revenue received by the state to the RSTF to ensure that each eligible recipient tribe receives its annual disbursement of $1.1 million.
The Department of Finance estimates that the amended compact for the San Manuel Band of Mission Indians will generate more than $7.2 billion to the state over the life of the compact if the tribe operates all 7,500 machines. Even if the tribe only places 3,000 additional devices into operation for a total of 5,000 machines, it is estimated that the state will receive more than $3.8 billion over the life of the compact.
The non-monetary aspects of the compact reflect the Governor's priorities and are substantially similar to other compacts signed by Gov. Schwarzenegger. Other facets of the compacts include:
- The tribe will prepare an environmental impact report to assess the potential environmental effects of new and expanded gaming facilities, and detail how environmental damages will be mitigated.
- The compact requires that the tribe resolve all disputes with employees, visitors and surrounding communities through binding arbitration. California tort law will govern any personal injury or third-party property damage claims, and the tribe will provide liability coverage.
- Any new construction must meet or exceed the building and safety codes of both the county and the city where new construction will occur.
The amended compacts with the Pechanga Band of Luiseno Indians and the San Manuel Band of Mission Indians are the 16th and 17th new or renegotiated compacts Gov. Schwarzenegger has signed.
