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California Governor Gavin Newsom has approved a new 25-year tribal gaming compact with the Fort Mojave Indian Tribe that removes the state’s share of future casino gaming revenue, prompting criticism from representatives of the commercial gaming sector.
The agreement authorises the tribe to operate up to two casinos with a maximum of 1,200 slot machines and other Class III gaming on eligible trust land in San Bernardino County.
Under the new compact, the tribe will no longer share a percentage of casino revenue with the state, replacing provisions contained in its previous agreement. Instead, the Fort Mojave Indian Tribe will reimburse California for regulatory costs and, if it operates more than 350 gaming devices, contribute 0.5 per cent of net win to a local impact mitigation fund.
The revised revenue-sharing model has drawn criticism from the California Gaming Association, which argues it continues a broader shift away from requiring tribes to make direct payments to the state.
Kyle Kirkland, president of the California Gaming Association and owner of Club One Casino in Fresno, said: “My card room pays $1m annually to the city of Fresno. Three tribal casinos operate within an hour of my business but pay no state taxes. What was sold to the California public is very different from what is happening today. It is a scam.”
The compact forms part of California’s ongoing framework for regulating tribal gaming under the Indian Gaming Regulatory Act, with the state maintaining oversight through licensing and regulatory provisions while tribal operators retain expanded commercial rights under negotiated agreements.
