Do Indian Casions pay taxes in California or not?

My friend says that Indian Casinos already pay taxes…something to do with the number of slot machines in a particular location. The rhetoric that I’m hearing in the media is that the tribes DO NOT pay taxes on gambling revenue. Anyone know what the scoop is on this?

Yes, I know I spelled “Casinos” wrong in the thread title…perhaps a kindly moderator will correct it for me?

AFAIK, the Indian tribes in California have signed various agreements with the state of California to give some revenues to the states and there are limits on slot machines, which are incredibly arcane.

However, the state of California cannot tax an Indian tribe because both are sovereign entities. One sovereign entity cannot tax another. It would be like California putting a tax on Nevada.

Double what BobT says. There exists a negotiated compact between the state and the tribe, which basically says “we’ll get along fine as long as you only have certain games, so many slot machines, and you pay us X% of your revenue.” Technically, that X% isn’t a tax, it’s more like a negotiated cut. So the media you’re hearing isn’t lying, just being deceptive.


just think of it as protection money

I think one of the people running for Gov of Calif wants them to pay taxes, in that case, it would be interesting to see what happens.