California Governor Gavin Newsom has signed a 25-year gaming compact with the Fort Mojave Indian Tribe that eliminates revenue-sharing payments to the state. The decision has drawn criticism from the commercial gaming sector.
The agreement allows the tribe to operate two casinos with up to 1,200 slot machines and other Class III games on land in San Bernardino County. Under the new compact, the tribe no longer shares a percentage of casino revenue with the state, unlike the previous agreement. Instead, Fort Mojave Indian Tribe will reimburse California only for regulatory costs and contribute 0.5% of net win to a local impact mitigation fund if operating more than 350 gaming devices.
The revised revenue-sharing model has been criticised by the California Gaming Association, which sees it as part of a trend in which tribes have stopped making direct payments to the state. Kyle Kirkland, president of the association and owner of Club One Casino in Fresno, said: 'My card room pays $1 million annually to the city of Fresno. Three tribal casinos operate an hour's drive from my business but pay no taxes to the state. What was sold to the California public is very different from what is happening today. This is a scam.'
The compact is part of California's regulatory framework for tribal gaming under the Indian Gaming Regulatory Act. The state retains oversight through licensing, but tribal operators gain expanded commercial rights through negotiated agreements.
