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Monkey Slots - Tracks Sue Over Slots

After the California government decided to side with Indian casino tribes and allow them slot machines in return for a steady flow of cash skimmed from their winnings in order to subsidize the maintenance of the state’s transportation system, a group of horse-racing tracks have responded with a lawsuit. The race tracks are complaining that the addition of slot machines would detract to greatly from their own revenues. Temper tantrum type lawsuits such as this have never succeeded in the past, yet it is still proving to be a pain in the butt for the state’s transportation department, who is anxiously waiting the issuance of it $1 billion for projects.

The lawsuits are in response to a deal that Governor Schwarzenegger worked out with five different Indian tribes in the state fairly soon after his election in 2004. At the time the state had found itself in a pretty desperate budget situation where the funds normally designated for transportation had be spent elsewhere and that left the left the state’s roadways in a tight fix, or on the contrary, not fixed at all.

What was negotiated therefore was that if the state allowed the tribes to include slot machines, the then tribes would collectively give one hundred million dollars to the state every year and also a small percentage of the take on each machine for the year. Last year the total given to the state was something around the one hundred and three million mark. The chance of these lawsuits going through and putting a holt on the progress on the transportation system is unlikely, due to the fact that two other similar cases were both dismissed.