California deal to expand tribal casino gambling

SACRAMENTO, Calif. (AP) — Gov. Arnold Schwarzenegger signed new agreements with five Indian tribes Monday that will allow a major expansion of tribal gambling in exchange for billions of dollars in payments to the state over the next quarter-century.

The deal allows an unlimited increase in the number of slot machines at the Indian tribes' casinos. The current compact, signed by then-Gov. Gray Davis in 1999, limits each tribe to 2,000 machines.

The tribes will pay the state a badly needed $1 billion this year and between $150 million and $200 million a year after that until 2030. In return, the tribes receive a guarantee that they will be California's only outlet for casino gambling.

"This is a fair deal for the tribes and for the state," Schwarzenegger said.