Legal counsel warns lawmakers not to take donations from illegal Indian gambling

The opinion cites federal laws against money laundering and racketeering, saying "money that is generated at an Indian casino from gambling activities that are illegal under state or federal law is potentially subject to seizure by federal authorities."

The opinion, obtained Thursday, comes to light as Indian tribes lobby to expand their operations and as their political influence grows in the Capitol. Tribes are among the largest campaign donors in the state, giving Democrats and Republicans more than $1 million this year.

Opponents of gambling's expansion say lawmakers who support the tribes' position should no longer take donations from them, the Los Angeles Times reported today.

Observers say the opinion's impact may be far reaching, affecting upcoming races for governor, attorney general and other statewide offices; in those campaigns, some candidates have accepted hundreds of thousands of dollars from various tribes.

But Proponents of gambling's expansion shrugged it off.

"If they (Indian casinos) were out of compliance, they would be shut down. They have not been shut down. The courts have not ruled."

Many aspects of the issue are not settled, the counsel's opinion acknowledges.

Federal law says a tribe must sign a compact with a state before it can offer the same type of gambling that is legal on its reservation. But it's still unclear what is or isn't legal and the battle continues.

Federal prosecutors around the state have started the prolonged process of getting court orders to shut down casinos where tribes have refused to negotiate on Gov. Pete Wilson's terms. A Sacramento County Superior Court judge ruled the governor must get legislative approval for any Indian gambling agreement.

The counsel's opinion was dated June 26, indicating it was circulating around the Capitol as legislators prepared to vote on a gambling compact signed by Wilson and the Pala Indians; the pact was denounced by several other tribes that want more control over their gambling enterprises.

The pact, which was voted down in an Assembly committee, is expected to be voted on again this summer.

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