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The California Gambling Control
Commission is dropping a plan Indian tribe’s give state inspectors 24/7
access to tribal casinos and financial records.
Last fall, after two years of debate over who is monitoring California's $8 billion tribal gambling industry, the state commission voted to claim oversight authority over Indian casinos. Officials approved regulations that spelled out a state role in inspecting casino books, gambling operations, customer and employee access to cash, and the integrity of the games. Commission members said they were filling a void created by a federal appellate court decision in late 2006 that said the National Indian Gaming Commission was without authority to regulate security standards for slot machines or casinos. Then, right after Christmas, the Gambling Control Commission cancelled a vote that was required to ratify its October decision. Tribal officials said the delay demonstrates recognition by the state that the tribes themselves hold primary responsibility to regulate casino operations. "The dispute really isn't about the standards. The dispute is over who has the authority to enforce them," said Howard Dickstein, a lawyer representing tribes including United Auburn, operator of the Thunder Valley Casino near Sacramento. "The state apparently doesn't have adequate respect for tribal governments and their gaming agencies' independence." A gambling foe, however charged that state officials are crumbing under the pressure of politics and threats of lawsuits from the Indians. "The state is caving in to tribal pressure," said Cheryl Schmit, director of Stand Up for California, which tracks tribal gambling issues. She said the commission "drew a line in the sand" only to "back away" from its "strong position." Evelyn Matteucci, chief counsel for the gambling commission, said she told tribal leaders at a Dec. 18 meeting that the board would work "with representatives of the tribes to continue to negotiate the terms" of the state's oversight role. "We would like to keep the dialogue open," she added. Under the rules of California tribal gambling compacts, tribal governments must make independent audits of casino operations from licensed state auditors. The state is allowed to conduct limited audits of slot machine "net win" totals under a handful of casino deals – in which tribes promised a share of casino revenues to the state for permission to operate more slot machines. The regulatory dispute with the Gambling Control Commission seems to center on how aggressively state officials can demand that tribes turn over casino audits or submit to inspections – and whether such demands violate the compacts. "To say we've had a difference of opinion is an understatement," said John Roberts, executive director for the tribal gaming commission for the San Pasqual tribe in northern San Diego County. "We didn't feel they had legal authority to do this. We screamed, 'You can't do it. And they said, 'Yes we can.' "
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