Casino Connection Nevada

Licenses for all 122,000 slot machines due to 66 California gaming tribes that hold 1999 compacts would come available under state Senate Bill 1201, which cleared its first hurdle last month when the Senate Committee on Governmental Organization voted to pass it. The bill has the potential to nearly double some 65,000 slots the state’s Indian casinos run now.

The path to law may be bumpy, or go nowhere, under opposition from gamers such as the Pala tribe that, since 2004, have renegotiated compacts for more slots in return for revenue sharing the 1999 pacts don’t require. Besides, while Governor Arnold Schwarzenegger has taken no stance on the bill since it was introduced in March, it could complicate his regular effort to extract gaming revenue for the state through new deals because the bill requires no compact amendments.

The California Gambling Control Commission maintains that only 32,151 licenses were allowed, according to Senate analysts. That’s less than half the number of machines in place now. The balance are “grandfathered and entitlement” units, with varying estimates of how many of those are allowed, too.

Analysts specifically point out that the Shingle Springs tribe, now moving its Red Hawk Casino (originally named Foothill Oaks) toward completion this fall, could get no licenses for at least 1,650 slots it wants to run in the $250 million complex southeast of Sacramento. That may be why Shingle Springs is reportedly trying to strike a new deal with Schwarzenegger. Otherwise it could be stuck with less lucrative Class II bingo games, which require no licenses—and are not subject to compacts that include new mitigation provisions the governor wants.