Stellar growth unlikely in Casino and gaming industry: unpaid bills, building delays impeding plans.

The year began with portents of growth for Southern California's American Indian gaming industry. But with gasoline approaching $5 a gallon and an economy set in neutral, the latter half of 2008 seems murky.

Half a year ago, four Southern California tribes made an appeal to California voters to grant them expanded gaming.

Extra slot machines, the argument went, meant extra money for the state general fund under new gaming deals.

Voters said yes on Feb. 5.

Recently, one of the four--the Sycuan Band of the Kumeyaay Nation--indicated it was not ready to expand from 2,000 slot machines to the 5,000 machines approved by voters.

The band, whose casino and reservation lie east of El Cajon, delayed paying the state tens of millions of dollars owed under the new agreement, according to accounts in the Los Angeles Times and the San Diego Union-Tribune.

The published reports said that while California voters approved the expansion deal, tribal members had not yet signed off on the deal.

The Times reported the Schwarzenegger administration gave the tribe permission to begin its payments to the state in 2009. The three other tribes must make their payments in July.

Sycuan's previous gaming agreement limits the tribe to 2,000 machines.

This comes at a time when federal government statistics show that growth in American Indian gaming is slowing.

Nationally, Indian casinos enjoyed $26 million in revenue in 2007, a 4.4 percent increase from the previous year.

In the past the industry enjoyed growth of 10 percent or greater. The region that encompasses California and northern Nevada grew by 1.6 percent to $7.8 billion.

American Indian tribes do not publicize their revenue, nor do the state or federal governments.

Construction As Indicator

One main indicator of growth--construction--has shown itself in different areas of San Diego County. In the north, the Pala band is paying for a segment of the highway that connects Interstate 15 with the casino.

Dignitaries broke ground on the project June 20. Casino administrators did not return an e-mail about the status of the band's planned expansion expected to cost $100 million.

In May, Valley View Casino revealed it wanted expand its casino by 7,000 square feet--a modest amount by local gaming standards--to accommodate extra bingo machines. The expansion would precede construction of a hotel tower. The San Pasqual Band of Mission Indians operates the casino outside of Valley Center, and recently expanded its entertainment offerings with outdoor concerts. The second-half lineup includes Chris Isaak, Sheryl Crow, Bill Cosby and Randy Travis.

The wild card for the latter half of 2008 may be the Jamul Indian Village. Working with publicly traded Lakes Entertainment Inc., the band wants to build a venue for bingo machines outside the village of Jamul. Neighbors oppose the project.