|The much needed tax revenue from California’s Indian casinos will not be at all close to the $1.5 billion Governor Davis had projected. Both representatives of the tribes and analysts for the gambling industry have concluded that “the odds of getting anything close to that amount are slim and none -- and don't bet on slim,” reports the Bee. |
The governor’s projection was based in part on the anticipated return from the increased number of slot machines the tribes would be allowed to operate. However, federal law prevents the state government from taxing Indians without their consent, so a quid pro quo deal has to be made. Negotiators are reportedly pessimistic about this arrangement coming into being. Several tribal leaders said Governor Davis had not helped the situation by making his proposal for allowing the slots, and suggesting a tax on them, without first consulting the tribes.
But analyst also say the state government’s assumptions as to gross tribal revenues is about double that anticipated by the tribes. Governor Davis was counting on taxes on 5 to 6 billion dollars, but the tribes maintain that their annual revenues would not surpass $3 billion.