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State of Play’s TL;DR
- California has signed off on a new tribal gaming compact that would let the Fort Mojave Indian Tribe open up to two casinos in the state.
- Unlike older deals, it does not require the tribe to share casino revenue with Sacramento.
California Gov. Gavin Newsom signed a 25-year compact with the Fort Mojave Indian Tribe on July 21. The deal would authorize as many as two casinos on eligible trust land in San Bernardino County, with up to 1,200 slot machines plus other Las Vegas-style games.
The biggest change is financial. Under the new compact, the tribe would mainly reimburse California for regulatory costs rather than make broader revenue-sharing payments. If it operates more than 350 gaming devices, it would also contribute 0.5% of net win to a local impact mitigation fund.
That marks a clear shift from the tribe’s 2004 compact under Gov. Arnold Schwarzenegger, which allowed up to 1,500 gaming devices and required escalating payments tied to slot machine counts and gaming revenue. The new agreement also removes payments into the Revenue Sharing Trust Fund and Tribal Nation Grant Fund.
Legal landscape change
The changes to the legal landscape come after the Ninth Circuit’s 2010 Rincon decision, which limited California’s ability to demand general revenue-sharing payments in tribal gaming compacts.
For operators and industry watchers, the deal is notable because it opens a path for Fort Mojave to expand into California for the first time. The tribe already operates Avi Resort & Casino in Laughlin, NV, and Spirit Mountain Casino in Arizona.
Critics argue California is giving up too much.
California Gaming Association President Kyle Kirkland told the New York Post:
“What was sold to the California public is very different from what is happening today. It is a scam.”
The compact is not in effect yet. It still needs ratification by the California Legislature, approval from the US Department of the Interior, and publication in the Federal Register.
Another open question is whether a second casino site near Needles will be taken into trust and receive the required approvals.
Based on reporting by Josh Koehn for the New York Post.
