he governor, however, was holding hostage additional tribal gaming licenses in the hopes that the tribes would pay a higher portion of revenue to the state. That strategy by Schwarzenegger appears to have failed.
On Thursday, the 9th US Circuit Court of Appeals decided against a delay of an order that forces the state to hand out the licenses. The state had appealed the August ruling of a federal judge that the state had to issue the gaming licenses to California tribes.
"Even though the state will be forced to hand out the licenses, there is a strong possibility that tribes do not go after all of them," said Legal Analyst Bob Brice, "The economy is simply too rocky right now for any of these tribes to make a serious investment into expanded casino gambling."
Brice also noted that the California tribal casino industry is already saturated. The state has the most tribal casinos in the nation, and the governor is moving forward on expansion. The economy has took a turn for the better in recent months, but is still not strong enough to support all casino operations.
In other states, casinos have closed their doors and even in California casinos have laid off workers during the recession. California lawmakers are also contemplating legalizing online poker in the state as a way to help the budget.