A federal judge has put on hold his order that Gov. Arnold Schwarzenegger and North County's Rincon Indian band reach an agreement on a gambling expansion by July.
U.S. Magistrate Judge William McCurine Jr. agreed yesterday to an emergency request by the governor's lawyers, who said the state could experience “chaotic” gambling expansion if the order wasn't delayed.
The judge found in April that Schwarzenegger negotiated in bad faith with the Rincon band by demanding money from slot proceeds for the state's budget without offering something of value in return.
He said then that if the governor and the tribe don't make a deal by July, he would appoint a mediator to pick from each side's last, best offer.
The governor is appealing that decision.
The judge's stay of his order is temporary.
He gave lawyers from each side the rest of the month to fully brief him on whether he should make the order permanent – at least until the appeal is decided – but didn't say when he would rule.
The governor's lawyers say a forced negotiation before the 9th U.S. Circuit Court of Appeal rules on the “bad faith” issue puts the state in a bad bargaining position that could lead other tribes to also expand their casinos in an “uncontrolled” manner.
Rincon's lawyers say that's speculation, and there is no good reason why negotiations can't go forth while the case is being appealed.
The 650-member Indian band wants to add to its 1,600-slot Harrah's Rincon casino near Valley Center to be more competitive with other tribes that are expanding their gambling operations.
Unlike Rincon, those tribes agreed to pay a share of their profits into the state's general fund.
Rincon's tribal government calls such payments an illegal tax.
Onell Soto: (619) 593-4958; onell.soto@uniontrib.com
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