A Tax, A Compact, A Battle

Today in San Diego a federal judge will hear arguments in a case between the Rincon Indian tribe and the State of California. The battle is over whether or not California negotiated in good faith over a compact with the Indian tribe for more slot machines for the Rincon Indian’s casino (north of San Diego).

An expert from the state estimated that the 500 additional slot machines proposed for the tribe’s casino would bring in just under $40 million a year. The tribe argues that California wanted about $38 million of that as the fee for the allowing the additional slot machines. The tribe argues that the state did not negotiate in good faith, and that the $38 million would be a “tax” rather than a fee.

On the other hand, California argues that they have negotiated in good faith; that they have reached agreements with numerous other tribes, including the neighboring Paula tribe; and that the additional machines would bring in money for the Rincon tribe.

A decision will likely be announced in a few weeks.

News Story: Here.

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