Breakthrough in Indian gambling negotiations

SACRAMENTO - Representatives of tribes and Gov. Gray Davis say they've achieved a breakthrough in negotiations over his proposal to expand Indian gambling in California.

Davis spokesman Michael Bustamante said the governor met Thursday with 85 tribal representatives in his office and "was very pleased" with a developing plan from the tribes that, while more than doubling the number of Indian casino slot machines, would result in a statewide cap on the devices.

Bustamante also said non-casino tribes in remote areas of the state could benefit by getting revenue from their rights to slots that they would transfer to tribes that wanted to expand casinos.

He added the governor is optimistic that the negotiations can be wrapped up by early next week.

Mark Macarro, tribal chairman of the Pechanga Band of Luiseno Indians in Temecula, didn't want to discuss specifics of the deal. But he termed the session with the governor "a meeting of the minds" and added the tribes must now work quickly to complete the plan.

"There were some conceptual things that have been discussed and we were able to come to mutual understandings today," said Macarro. "It's always good to have communications, and today was a central part of that."

Under the proposal sketched out by Bustamante, each of the state's 107 tribes could have up to 350 slots. Those with more already wouldn't have to give up what they have.

More than half of the tribes have no slots at all now, and if they chose not to get into the gambling business they could shift their slot rights to tribes that wanted to expand beyond the limits.

"The governor thought it was a very good proposal. He liked what he heard," said Bustamante, adding that the result would be a revenue-sharing system helping all tribes.

"It's certainly a work in progress and we are very close," he said. "The governor is very optimistic that we'll be able to conclude this in short order, in the next couple of days, early next week."

The revenue-sharing provision is similar to one established under compacts former Gov. Pete Wilson signed with 11 tribes, but generally opposed by California Indians.

The majority of the state's tribes have supported a revenue-sharing mechanism that would have required gambling tribes to deposit 2 percent of their net winnings from gambling terminals into a fund for non-gambling tribes. Proposition 5, an Indian-authored ballot initiative struck down in court, outlined that mechanism.

Bustamante also said Davis repeated his insistence that the right for tribal casino workers to join unions "has to be addressed" as part of the deal. Davis is known as a strong supporter of labor unions.

Richard Milanovich, chairman of the Agua Caliente Band in Palm Springs, said that despite the meeting efforts will continue to collect signatures for a ballot question on constitutional guarantees for Indian gambling.

The signatures for the question, which goes beyond what Davis wants, could be filed Tuesday. But Milanovich said he'll wait to see final wording of the deal with Davis, adding he had "guarded optimism" and sensed "a major step forward from the governor's office."

"But there's a lot more issues that are left unsaid, undiscussed, at this time," he said.

That includes the fine print on the exact numbers of slots, revenue-sharing, and guarantees of union organizing rights to some 16,000 tribal casino workers. Indians say they recognize worker rights, but the administration requirement infringes on their sovereignty.

Indian sovereignty exempts tribes from federal labor laws, but the Hotel Employees and Restaurant Employees union has been trying to get access to casino workers, the majority of whom are non-Indian.

Also, while both sides want a change in the state constitution to allow Indian gambling, Davis wants a more restrictive amendment that would go through the Democrat-controlled Legislature, where he has more control over the terms.

While the Davis plan would assure the tribes a slots monopoly, some tribes still favor their broader constitutional amendment, and have been threatening to put it directly to the voters in March if Davis won't deal on their terms.

Some constitutional change is needed because of the state Supreme Court's ruling last week that last year's Proposition 5, a statutory initiative approved by voters allowing Indian gambling, violated the state's ban on casino-style gambling.

Some tribes are in danger of losing their slots under a federal court order if they don't sign a compact soon.

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