Calif. loses appeal in Indian casino case

SAN DIEGO, April 21 (UPI) -- A U.S. appeals court ruled California Gov. Arnold Schwarzenegger cannot force Indian tribes to pay into the state's general fund if they want to expand casinos.

The 2-1 decision handed down Tuesday upheld a 2008 ruling by a District Court judge in favor of the Rincon Band, a tribe in San Diego County, the San Diego Union-Tribune reported. Judge Milan Smith, writing for the majority, compared Schwarzenegger to 19th century U.S. officials who took Indian land after gold was discovered.

"Today, many tribes have struck figurative gold with casino gaming, and again, some state governments, just like their predecessors, are maneuvering to take, or at least share in, some of that figurative gold," Smith wrote.

Judge Jay Bybee, dissenting, said tribes have agreed to share some casino profits with states. He said the ruling would force the state to authorize any gambling the tribe wants.

The court case is being followed by state officials and Indian tribes around the United States. Schwarzenegger is expected to appeal.

"This is a great, big message to the state," Rincon Chairman Bo Mazzetti said. "Your days of trying to bully tribes around ... those days are over."