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A federal appeals court ruled this week in favor of a lower court ruling that sided with the Rincon Band of Luiseno Indians in their legal battle against California Governor Arnold Schwarzenegger.
The three Judge panel of the 9th U.S. Circuit Court of Appeals said that the Governors hardball negotiation tactics with the Indian tribe seeking to expand its casino were illegal.
The 2-1 ruling written by Judge Milan Smith Jr., says the governor’s revenue-sharing demands amounted to an illegal federal tax and that the state must make a more reasonable offer or bring in a mediator.
“We are mindful that many states, and especially California, are currently writhing in the financial maw created by the clash of certain mandatory state expenditures at a time when state revenues have plummeted from historic levels,” Judge Milan Smith Jr wrote. “However, we are also keenly aware of our nation’s too-frequent breach of its trust obligations to Native Americans when some of its politically and economically powerful citizens and states have lusted after what little the Native Americans have possessed.”
In 2004 the tribe filed a lawsuit after the Schwarzenegger administration insisted it share gambling profits with the state’s general fund in exchange for its approval to add more slot machines.
The tribe, which is trying to negotiate an expansion of its casino in San Diego County, says the case was “a question of economic survival”.
Scott Crowell a Lawyer for the tribe, said the Rincon Harrah’s casino in northeast San Diego County is the tribe’s chief source of income.
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