Deals Would Add Slot Machines in Calif.

California Gov. Arnold Schwarzenegger, right, signs autographs for students after greeting them on their first day of class at California State University Long Beach Tuesday, Aug. 29, 2006, in Long Beach, Calif. Gov. Schwarzenegger highlighted his efforts to protect access to higher education. (AP Photo/Ric Francis) (Ric Francis - AP)

LOS ANGELES -- Gov. Arnold Schwarzenegger announced agreements Tuesday that would allow two of California's richest Indian tribes to vastly expand the number of slot machines in their casinos. In return, the tribes would pay the state billions.

The agreements, signed Monday night, must also be approved by the Legislature. They amend existing gaming compacts with the Temecula-based Pechanga Band of Luiseno Indians and the San Manuel Band of Mission Indians in San Bernardino County.

Both tribes, much of whose wealth comes from the lucrative slot machines, said the new contracts would give them financial security for the near future.

The new compacts call for the tribes to pay more money to the state in exchange for being allowed to operate 7,500 slot machines each, up from the current 2,000 each. The tribes would pay an increasing percentage based on the number of slots they decide to operate.

The Department of Finance estimated the deals could provide as much as $14.2 billion to the state through the life of the contracts, which end in 2030.

The tribes estimated the state would receive, at most, $6.6 billion more revenue, and the estimates could not be immediately reconciled.

In addition, each tribes agreed to pay $2 million a year into a fund for tribes without casinos.

The announcement came just a day after the state Assembly rejected a similar deal between the governor and the Agua Caliente Band of Cahuilla Indians in Palm Springs.

Labor unions opposed that agreement for not guaranteeing the right to organize casino workers.

But the state Senate on Tuesday gave final approval to a compact allowing the Quechan Tribe to operate up to 1,100 slot machines at a reservation casino in southeastern California.

The tribe had been limited to 349 slots. The Assembly approved the Quechan deal last week.