The state had little choice after the 9th U.S. Circuit Court of Appeals ruled last year in favor of the tribe, which operates a casino in northern San Diego County. The U.S. Supreme Court wouldn't consider the state's appeal.
The tribe sought to add slot machines in 2003, but says Governor Arnold Schwarzenegger's administration falsely said no more licenses were available.
The tribe says that misrepresentation led tribal leaders to agree to a new and more costly deal with the state.
The courts ordered the state to return $36.2 million in overpayments.