California Signs New Gaming Compact, Exempts Tribe from Revenue Share

California Signs New Gaming Compact, Exempts Tribe from Revenue Share – Governor Gavin Newsom signed a new 25-year gaming compact with the Fort Mojave Indian Tribe, eliminating the state’s share of future casino revenue. The agreement, signed July 21, 2026, authorizes the tribe to operate up to two casinos in San Bernardino County.

What Happened

On July 21, 2026, California Governor Gavin Newsom formally executed a 25-year gaming compact with the Fort Mojave Indian Tribe, according to details reported by the New York Post and the Governor’s office. This new agreement permits the tribe to establish and operate up to two casinos within San Bernardino County, featuring as many as 1,200 slot machines and other casino games, as stated by the Governor of California and the New York Post.

The compact notably diverges from the tribe’s preceding 2004 agreement by eliminating the requirement for the Fort Mojave Indian Tribe to share casino revenue with the state of California (New York Post). Under the new terms, the tribe’s financial obligations to the state are primarily limited to reimbursing regulatory costs and, if operating over 350 gaming devices, contributing 0.5% of its net win to a local impact mitigation fund, as detailed by the New York Post.

Key Details

• Governor Gavin Newsom signed the new 25-year gaming compact with the Fort Mojave Indian Tribe on July 21, 2026 (Governor of California).
• The compact authorizes the Fort Mojave Indian Tribe to operate up to two casinos with a maximum of 1,200 slot machines on eligible trust land in San Bernardino County (New York Post).
• The new agreement eliminates the requirement for the tribe to share a percentage of casino revenue with California, a provision present in the 2004 compact (New York Post).
• Fort Mojave’s financial obligations under the new compact include reimbursing regulatory costs and potentially contributing 0.5% of its net win to a local impact mitigation fund if operating more than 350 gaming devices (New York Post).
• The tribe will no longer make payments to California’s Revenue Sharing Trust Fund or the Tribal Nation Grant Fund (New York Post).

Why It Matters

This compact represents a notable shift in California’s approach to tribal gaming revenue-sharing, as reported by the New York Post. Kyle Kirkland, president of the California Gaming Association, indicated the compact continues a trend of reduced state revenue share from tribal casinos, contrasting with his card room which reportedly pays $1 million annually to Fresno (New York Post). He also stated that in other states, tribes would be ceding between 10% to 50% of slot revenue, suggesting California is forgoing significant potential revenue (New York Post).

The change in terms is attributed partly to the Ninth Circuit’s 2010 decision in Rincon Band of Luiseño Mission Indians v. Schwarzenegger, which ruled that California could not impose general revenue-sharing payments on tribes as an unlawful tax under the federal Indian Gaming Regulatory Act (New York Post). This ruling reportedly reduced California’s negotiating leverage, necessitating that financial obligations be tied to legitimate regulatory costs, mitigation payments, or other permissible considerations, according to the New York Post.

What’s Next

The compact’s full implementation is contingent upon several subsequent approvals (New York Post). It still requires ratification by the state Legislature, approval by the U.S. Department of the Interior, and publication in the Federal Register before it can take effect, as detailed by the New York Post.

Originally reported by: New York Post. Published: 7/22/2026, 9:58:06 PM.