Friday, June 20, 2008

Sycuan Band of El Cajon – Amended Compact Not Ratified

The Sycuan band of El Cajon, whose amended compact was one of the four which passed on the Feb ballot, has not yet approved its own gaming agreement and the deadline to do so has expired.

It could potentially cost the state $30 million.

The original deadline gave Sycuan until Dec. 15, 2006, to submit the agreement to its General Council for final approval.

Sycuan and the administration reserved an option to extend the ratification deadline, but they did not do that until this month. The new timelines give the tribe until Jan. 1 to ratify and the governor until Jan. 15 to rescind the deal.

Sycuan spokesman, Adam Day said that the February ballot measures challenging the four compacts “created uncertainty for the tribe”. The tribe, he continued, “is anxious to take advantage of the amended compact when all necessary planning and related negotiations are concluded.”

One reason for the delay may be the immediate expense – at least $18 million a year to the state – that the new deal would cost Sycuan before it adds a single slot machine. The slumping economy and rising fuel prices have reduced traffic to many Indian casinos in the nearly two years since the Sycuan's signed the agreement with the governor.

The tribe also may be reassessing its options in light of a recent federal judge's ruling that could limit the revenue the state can seek from tribes in the future. That case, involving a lawsuit brought by the Rincon band of North County, is on appeal.

Also in the mix is the proposed NIGC Class II regulations which, if approved, may mean that the approximately 300 machines that the tribe says are based on bingo would be a violation of the tribe's 1999 compact or would trigger revenue-sharing provisions under the deal voters approved in February.

In comparison, Morongo, which was also one of the four on the Feb ballot, ratified its deal Nov. 18, 2006, and began installing hundreds of new slot machines immediately after the Feb. 5 vote.

Hoch, the governor's attorney, said the state still hopes Sycuan will execute its agreement. In addition to more money for the state, the compact contains stronger environmental, patron and employee protections, she noted.

Source:
http://www.signonsandiego.com/news/state/20080619-9999-1n19sycuan.html

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