October 6, 2009
SAN FRANCISCO - Up to 10,549 new slot licenses will be distributed by the
California Gambling Control Commission to Indian casino statewide after a
three-judge panel of the 9th U.S. Circuit Court of Appeals rejected a request by
Gov. Schwarzenegger to block an August ruling by a U.S. District judge to issue
the additional licenses. The earlier ruling found the state had miscalculated
the total number of slot licenses authorized by the 1999 Indian gaming compacts.
The California Gambling Control Commission issued 3,548 of the new licenses on
Monday.
The 9th U.S. Circuit Court of Appeals will hear the case in February. Until then
the judges did not find a valid basis for delaying the immediate issuance of the
slot licenses. They rejected the government's claim that the additional slot
machines would cause irreparable problems such as increased traffic and crime.
A Schwarzenegger spokesman, Jeff Macedo, said, "We still think we should win
that appeal."
The governor came into office in 2003 pledging to make Indian casinos "pay their
fair share" and used the limited number of gambling licenses as a negotiating
tool to get concessions from tribes. The court order to increase the total
number of slot licenses is a setback to Schwarzenegger's negotiations.
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