Two people connectedwith Las Vegas are
ready to become part of a management team
that is said to run one of the world's
largest casinos in the densely populated San
Francisco Bay Area.
Palms resort owner George Maloof and
Jerry Turk, former manager of the
Fitzgeralds casino in downtown Las Vegas and
now the head of the management company for
the Pala hotel-casino near San Diego, are
part of a limited liability company that is
expected to manage and develop a major
casino resort for the Lytton Band of Pomo
Indians in San Pablo, Calif.
The Rumsey Band of Wintun Indians, who
own and manage the Cache Creek casino near
Sacramento, and the Pala Band of Mission
Indians, who own the Pala casino, also will
have a stake a claim in the management
company.
The casino is controversial because of
its size and because it would be considered
the first California casino in an urban
area. Congress in 2000 authorized the
federal government to take an existing card
club into trust for the Lytton tribe,
creating a mini-reservation on which the
resort would be built.
California Gov. Arnold Schwarzenegger is
expected to sign a compact with the tribe
today, paving the way for plans to build a
casino resort that would be up to 600,000
square feet and have up to 5,000 slot
machines, according to the Los Angeles Times
and Sacramento Bee. The casino would be
multiple stories and would replace the
tribe's existing Casino San Pablo, a card
room that sits on 9.5 acres, the newspapers
said.
So far, the Governor has already signed
renegotiated contracts with five tribes that
allow unlimited slot machines in exchange
for payments to the state. Those include the
Pala, Rumsey, United Auburn Indian
Community, Viejas Band of Kumeyaay Indians
and the Pauma Band of Mission Indians.
Station Casinos Inc. manages the Thunder
Valley Casino near Sacramento for the Auburn
tribe and Caesars Entertainment Inc. has
reached an agreement with the Pauma tribe to
manage a casino for the tribe.
The management group for the proposed
Lytton casino would receive up to 25 percent
of the San Pablo casino's net profit over
the life of the seven-year contract,
according to newspaper reports.
Construction would create the first
Indian gaming venture for Maloof, who is
known for developing the off-Strip Palms
into a successful slot machine haven as well
as a sexy hotspot frequented by
twenty-something hipsters.
Maloof said he hasn't been looking for
tribal casino contracts and doesn't expect
to aggressively pursue them like Station
Casinos, which has contracts pending with
multiple tribes in California.
Maloof's company began construction about
a month ago on a second hotel tower at the
Palms. The $200 million project is expected
to include a recording studio as well as
other amenities that are still under
development.
The Lytton tribe has been the focus of a
major lawsuit that has shaped tribal gaming
policy and has also faced critics who fear
the casino will spark a trend toward urban
casinos outside of historic reservations.
Others say the criticism is unfounded in
part because the Lytton tribe didn't have a
reservation to begin with and because its
casino project was authorized by an act of
Congress rather than the typical federal
application process.
A federal appeals court in California
last year upheld a 2002 decision by a
federal judge in Sacramento who ruled in
favor of the Lytton tribe's casino plans.
San Francisco Bay Area card clubs fought the
tribe, arguing that California's Proposition
1A (the statewide initiative in 2000 that
amended the state constitution to allow
tribes to operate casinos on their
reservations) wasn't intended to give tribes
the authority to build casinos outside of
their reservations and in urban areas.
Similarly, Nevada Sen. Harry Reid tried
to block the San Pablo casino with a bill
that would have reversed the act of Congress
that authorized the project. Reid remains
opposed to the Lytton casino because he says
it is not on a historic reservation. Reid
has said the process by which the tribe
obtained the casino opportunity isn't fair
to other tribes and runs counter to the
spirit of the Indian Gaming Regulatory Act,
the 1988 law Reid helped draft that
authorized tribes nationwide to develop
casinos on their reservations.