The state Senate has approved a new gambling compact that would provide financial breathing room for the Indian tribe that owns the troubled Red Hawk Casino in Shingle Springs.
The new compact was passed unanimously by the Senate on Thursday, the Associated Press reported. AB 1267 now goes to the Assembly.
The new compact would significantly reduce the amount of money the state would collect from the casino and its owner, the Shingle Springs Band of Miwok Indians.
But even if the Legislature approves it, the new deal wouldn't take effect until the tribe restructures some $500 million in private casino-related debts.
The casino has performed well below expectations, prompting the tribe to stop making principal payments in 2011 on one of its casino startup loans.
Call The Bee's Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.