California Gov. Arnold Schwarzenegger (R) opposes changes to the Indian Gaming Regulatory Act that involve revenue-sharing and Class II electronic devices.

Schwarzenegger, who campaigned last fall on increased revenue-sharing, is currently negotiating compacts with some tribes in order to obtain at least $500 million in annual revenues for the state. He wrote a letter to the leaders of the Senate Committee on Indian Affairs, who held a hearing on amendments to IGRA yesterday, expressing his concerns.

"The sole purpose of this amendment appears to be to limit the ability of the state to ensure its fair share of the revenue generated by the tribes� gaming operations," the letter stated, according to The Palm Springs Desert Sun. "You face my strong opposition to this measure."

Sens. Ben Nighthorse Campbell (R-Colo.) and Daniel Inouye (D-Hawaii) did not raise the letter specifically but spoke about the pressure tribes are facing to send more gaming dollars to the states. The amendments they are considering would make it harder to justify revenue-sharing in compacts unless tribal needs are met.

Schwarzenegger also said the "bill would subject states to the widespread operation of sophisticated gambling devices" that can't be regulated by states. However, the U.S. Supreme Court, in rejecting two cases in this arena, has effectively ensured that technologically advanced Class II devices are indeed Class II.

A provision in the bill clarifies that such electronic gaming devices are legal for tribes to operate without a tribal-state compact.

Get the Story:
Schwarzenegger fights changes to federal act (AP 3/24)
Governor fights gaming bill (The San Diego Union Tribune 3/25)
Bill may limit state�s tribal casino take (The Palm Springs Desert Sun 3/25)
Interior official says tribes paying too much to states (The Las Vegas Review-Journal 3/25)
Indian gambling official urges cap on tribal payments to states (AP 3/25)