CA Indian casino troubles

from the Sacramento Bee (1/19):

Tribal slots deal no jackpot for California
By Peter Hecht
phecht@sacbee.com
Published Monday, Jan. 19, 2009

"Second of two parts examining the effects of the economy on gambling in California.

As California government verges on going broke, one long-promised elixir – Indian casino gambling – is proving to be not such a sure bet.

Tribal revenue-sharing payments to the state will total a third less than expected this fiscal year and are expected to fall further short of projections for the following year, according to new state budget estimates.

The forecasts raise doubts about the anticipated windfall from Gov. Arnold Schwarzenegger's pursuit of new casino deals and unprecedented expansion of Indian gambling.

"It was oversold," said I. Nelson Rose, a Whittier College professor specializing in gambling law. "He (Schwarzenegger) thought the deals were good for the tribes and the state. But he was wrong in predicting the future. And the tribes were wrong, too."" ...

for the complete story

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from the Sacramento Bee (1/18):

California's Indian casinos see gamblers spend less
by Mary Lynne Vellinga
Published Sunday, Jan. 18, 2009

"First of two parts examining the effects of the economy on gambling in California.

The four-story steel skeleton and idled cranes in back of Thunder Valley Casino in Placer County puncture any notion that the gambling business is recession-proof.

Construction stopped abruptly in December on the casino's $1 billion expansion. Its owner, the Auburn Indian Community, is reassessing whether it really needs a 23-story hotel, or a nine-story parking garage.

Thunder Valley representatives say the timeout has nothing to do with the December opening of the new, $530 million Red Hawk Casino on Highway 50 in Shingle Springs. Tribal spokesman Doug Elmets said construction will resume this spring, perhaps with minor modifications.

But there's no denying that the new competition comes at a bad time for Thunder Valley and other gambling venues." ...

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