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New legislation and compacts with the tribes in
California have opponents up-in-arms over the slot machines monopoly the
state has just give the tribes. Previously the compacts in California
definitely protected the interests of the tribes and their slot machines,
but they also limited the number of slot machines the tribes could operate.
Now though, certain tribes wanted more assurance that they had control over
the slot machines in California.
The old compact limited each tribe to 2,000 slot machines operating per
tribe—even if they had more than one casino. In addition to that limit
though, on the plus side, the state also gave protection to the tribes by
limiting the right to operate slot machines to the tribes. That previous
compact seemed to benefit everyone as the tribes gained exclusivity, and the
state and non gaming tribes received portions of the slot machines revenue.
But the recent compact signed with the tribes extends the tribal exclusivity
even farther—to the point where many are claiming the tribes will now have a
monopoly on the slot machines and gaming industry. Five tribes negotiated
with the state and settled on a more advantageous compact. The tribes will
pay the state $100 million a year from the slot machines revenue for the
right to sue non-Indian casinos if they try to operate slots.
Though the opponents to this compact sued the state over the perceived
monopoly, the Court of Appeals dismissed the case on the grounds that they
had no acted swiftly enough. The statute of limitations on the case was 60
days to file a challenge against the compact, and that time has long since
passed.
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