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U.S. Magistrate Judge William McCurine Jr. ruled on an emergency request by the governor's lawyers, who said the state could experience “chaotic” gambling expansion if the court intervened -- now.
The judge determined last month that Schwarzenegger negotiated in "bad faith" with the Rincon Indian band by demanding money from slot proceeds for the state's budget without offering something in exchange.
The judge also said 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 judge, however, stayed his order, and 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 an appeal by the governor is decided.
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The 9th U.S. Circuit Court of Appeals is poised to rule on the “bad faith” issue, and that puts the state in a bad bargaining position that could lead other tribes to also expand their casinos in an “uncontrolled” manner.
The tribe's lawyers say there's 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 to be more competitive with other tribes.
Those tribes have already agreed to pay a share of their profits into the state's general fund, but Rincon's tribal government calls those payments an illegal tax. Judge McCurine agreed.
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