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Red Hawk Casino signs 5,000 slot machine compact

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July 2, 2008

SACRAMENTO - Gov. Schwarzenegger signed a compact Tuesday with the Shingle Springs Band of Miwok allowing the tribe up to 5,000 Las Vegas-style slot machines at their Red Hawk Casino. The casino is under construction just north of Highway 50 in Placerville. It is a major route between the Bay Area and South Lake Tahoe.

The compact must now be ratified by the state legislature and than approved by the federal Bureau of Indian Affairs. "We expect to receive these approvals prior to the opening of the Red Hawk Casino, which is on schedule for late fourth quarter of this year," says Mr. Tim Cope, president and chief financial officer of Lakes Entertainment Inc., which will manage the facility.

The agreement runs through 2029. The tribe will share revenues with the state based on a sliding scale percentage of slot machine revenues ranging from 20 percent to 25 percent. The tribe will also pay $4.6 million per year to a trust fund that pays non-gaming tribes in California.

The 270,000-square-foot casino will open with 2,000 slot machines, 75 table games, a high stakes gaming room, 10 food and beverage outlets, and enclosed parking.

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