California is the largest tribal casino gaming
State in the U.S. And while the State has received billions in tax dollars from
tribal casino revenue, an appeals court has ruled that the California Gambling
Control Commission has not done their job to ensure that tribes are actually
coughing up what they are supposed to. Stemming from a lawsuit filed by a former
gambling watchdog claiming that California Gambling Control Commission has
inadvertently allowed over $300 in tax payments to fall under the radar, the
appeals decision now forces the Attorney General's Office to decide the next
course of action.
According to the ruling, the practices of the
Commission permit tribes to determine their own methods for calculating profit
which directly influence adjusted figures sent to the State. Furthermore, out of
twenty-eight tribes sending their annual financial reports into the Commission,
only one audit was undertaken. The ruling states that these practices fall short
of ensuring that casino tribes are paying back the appropriate amount of funds
required by State law.
And while Governor Schwarzenegger is calling for
more slot machines in order to generate greater tax revenue, the ruling now
questions whether more slot machines are necessary to generate the figures
Schwarzenegger is calling for if proper auditing practices are in place. The
Attorney General's office is still reviewing the appeals decision.
The biggest irony of all is that four tribes
recently coughed up $11 million to a campaign committee formed to mitigate
efforts seeking to reverse recently amended casino agreements in favor of the
tribes. According to Secretary of State's office, $10 million was equally
contributed to the campaign by the Agua Caliente Band of Cahuilla Indians and
Morongo Band of Mission Indians, while $1 million was equally contributed to by
the Pechanga Band of Luiseno Indians and Sycuan Band of Kumeyaay Indians.
Apparently, California casino tribes still have plenty of money in the bank.