The family that owns the Palms casino in Las Vegas raised more than $1 million for California Gov. Arnold Schwarzenegger (R), who said he wouldn't take money from gaming interests.

Gavin and Joe Maloof organized a fundraiser for Schwarzenegger at a game for the Sacramento Kings, a team they own. The money went to Schwarzenegger's California Recovery Team, which is now fighting two rival gaming initiatives, including one sponsored by the Agua Caliente Band of Cahuilla Indians.

The event was held in February. Last month, Schwarzenegger announced a compact for a large urban casino with the Lytton Band of Pomo Indians.

The tribe has an agreement with the Maloofs to manage the casino. According to the Associated Press, the family will get about 20 percent of the profits.

The Maloofs say the casino deal wasn't discussed at the fundraiser and that the deal wasn't signed until later. Schwarzenegger denies knowing about the family's connection to the casino.

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SCHWARZENEGGER FUND-RAISER: Maloofs deny buying favor (AP 9/1)