The state has agreements with about 70 Indian tribes allowing them to have casinos with slot machines and card games like Twenty-one. Most tribes have agreements lasting until 2020 that limit how many slot machines they can have. In 2004, the Governor and nine tribes made new agreements that let tribes have more slot machines in return for new payments to the state’s General Fund and local governments. These new agreements end in 2030. Indian tribes are not required by U.S. law to pay taxes.
Let each Indian tribe choose to change to a gaming agreement that would last for 99 years. In new agreements, the state could not limit the number of slot machines, the number of casinos or the types of gambling on Indian land. In return, a tribe would make payments to the state’s General Fund at the current business tax rate (now about 9 percent of net income). If the state allowed anybody but the Indian tribes to have the same types of gambling, the tribes could stop making the payments to the state.
Effect on government spending:
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State income could go up or down, possibly by over a hundred million dollars each year. Local governments would probably lose millions of dollars each year.