Indian Gaming > Racetracks sue to stop Schwarzenegger pacts

September 17, 2004

Racetracks sue to stop Schwarzenegger pacts

A group of racetracks filed suit against California Gov. Arnold Schwarzenegger (R) in hopes of stopping compacts he signed with five tribes.

The compacts allow the tribes to operate unlimited slot machines. But the racetracks say the agreements violate the state constitution because they were passed under a little-used clause that outlaws "special" privileges to anyone.

The racetracks are the same ones backing Proposition 68, which forces tribes to share 25 percent of slot machine revenues or lose their monopoly on the machines. According to The Los Angeles Times, nearly $70 million has been raised on both sides of the issue.

Get the Story:
Racetracks Sue Over Gov.'s Indian Casino Deals (The Los Angeles Times 9/17)
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Casino deals challenged (The Sacramento Bee 9/17)