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Another Casino-Owning Tribe Sues

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From a Times Staff Writer

A day after five tribes sued to head off a proposed ballot initiative that could break their state monopoly on slot machines, a Palm Springs tribe that owns two casinos also filed a suit to block the measure.

Richard Milanovich, chairman of the Agua Caliente Band of Cahuilla Indians, filed the suit Wednesday in the state court of appeals in Los Angeles. It alleges that the proposal -- by racetracks and card clubs that could get slot machines if it passed -- is deceptive and would violate state and federal law. On Tuesday, attorneys for the five other tribes made similar allegations in their suit, filed with the state Supreme Court.

For the record:

12:00 a.m. April 23, 2004 For The Record
Los Angeles Times Friday April 23, 2004 Home Edition Main News Part A Page 2 National Desk 1 inches; 57 words Type of Material: Correction
Initiative lawsuit -- An article in Thursday’s California section reported that a suit was filed Wednesday by the Agua Caliente Band of Cahuilla Indians to block a proposed initiative that could end tribes’ state monopoly on slot machines. The suit was filed Tuesday, the day five other tribes filed a similar suit with the California Supreme Court.

Milanovich’s tribe is pushing a competing initiative, which would allow unlimited casino expansion on reservations and require that tribes pay 8.84% of their net profit to the state.

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The measure sponsored by the card rooms and racetracks would require that tribes pay state and local governments 25% of their casino winnings, or $1 billion or more a year. If they refused, the proposed initiative says, 11 card rooms and six racetracks would gain the right to operate 30,000 slot machines and pay a third of their gross revenue to state and local governments.

Greg Larsen, a spokesman for the card rooms and racetracks, said the suits are “not unexpected.”

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