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Governor, Tribes Reach Agreement

Governor Schwarzenegger and tribal negotiators have agreed that California´s first urban casino will pay the state 25 percent of its proceeds — as high as any tribe in the nation — but will have half as many slot machines as originally proposed.

In the agreement reached yesterday, the administration says slicing the number of slot machines at the largest casino would trim the state´s annual take from five casino compacts signed today from $200 million to $180 million.

The Lytton Band of Pomo Indians agreed to reduce from 5,000 to 2,500 the number of slot machines it would operate in the heart of the San Francisco Bay Area.