As tribal gambling grows in California, tribes that once united to legalize Las Vegas-style casinos appear increasingly divided over competing interests in huge profits.

Most recently, the Pala Band of Mission Indians near Fallbrook contributed $500,000 to support a ballot initiative that seeks to overturn the deals that allow four other tribes, including the Pechanga Band of Mission Indians near Temecula, to get more slot machines.

The Rincon Band of Mission Indians in Valley Center is suing the governor, charging that his administration sought to impose what Rincon called unfair fees to increase the number of slot machines. The fees were similar to the ones Pala and four other tribes agreed to in negotiations with the state.

The infighting could hurt tribes' public image, said Jack Pitney, a political science professor at Claremont McKenna College.

"Not so long ago, the tribes were the good guys and a long ballot fight could change that," Pitney said.

Tribal casinos in California generated $7.7 billion last year, according to the Indian Gaming Industry Report by Alan Meister, an economist with a Los Angeles firm called the Analysis Group. But growth in the industry appears to be slowing, in part due to fewer casinos being built, according to the report.

Tribal casinos operate under rules laid out in individual agreements between each tribe and the state.

Agreements made with Gov. Gray Davis when tribal gaming began in 1999 limited the number of slot machines tribes may use. Now, many tribes in prime locations, including San Diego and Riverside counties, are seeking amendments to their deals to allow them operate many more machines.

State asks tribes to pay up

After Davis was recalled during a state budget crisis in 2003, Arnold Schwarzenegger was elected governor on a platform that promised more slot machines to tribes in exchange for more gaming revenues for the state.

The following year, Schwarzenegger announced he negotiated revised agreements with the Pala, Pauma and Viejas bands in San Diego County, as well as two Northern California tribes.

Under the agreements, the tribes would make a one-time payment of $1 billion to the state with a bond. The tribes would also make annual payments of $150 million to $200 million to the state for the duration of the agreements, which are set to expire in 2030.

The Rincon band, which opened negotiations with the Davis administration, said it was left out of meetings about the deals and has tried to get all those agreements tossed by the courts.

"During these meetings, the state negotiated new compacts that dramatically changed the landscape of tribal gaming in California," Rincon attorneys said in court documents.

Peter Kaufman, an attorney for the governor, said in a court hearing Monday that Rincon had an opportunity to negotiate with the state but declined the state's proposals.

The other tribes "were willing to agree to revenue sharing with the state; Rincon didn't," Kaufman said.

Pala squares off with Pechanga

Pala's new agreement with the state allows the tribe to surpass the 2,000-slot-machine limit in its original agreement. In exchange, the tribe would pay $8,500 to $25,000 a year for each device it adds beyond the ones it had.

The Pala band operates 2,292 slot machines at its casino east of Fallbrook on Highway 76. It announced plans to expand the casino last year. Pauma, which signed a similar agreement with the state, also plans to replace its midsize casino in Pauma Valley with a large-scale resort and casino.

Rincon, which has partnered with Las Vegas giant Harrah's Entertainment, has said that its casino with 1,600 slot machines can't compete with its neighbors without more slots.

All of the casinos are competing with the Goliath-like Pechanga Resort & Casino, a large dining and gambling resort 10 miles north of Pala in Riverside County. Under a new agreement with the state, Pechanga could expand its operation to include 7,500 slots.

The Pala tribe has complained that the agreement is unfair.

Pechanga and the three other tribes would pay 15 percent to 25 percent of the winnings on any new machines they install. That will equate to much less than the fees Pala is required to pay for new machines, said Howard Dickstein, a tribal gambling attorney who represents Pala.

"It's about having consistent policies and applying the same rules," Dickstein said.

Fighting at the ballot box

The agreements opposed by Pala would allow the four tribes to operate some of the largest casinos in the world. The Sycuan band in East County and the Agua Caliente band in Palm Springs could have 5,000 slots each. In addition to Pechanga, Morongo in Riverside County could also have up to 7,500 slots.

The Pala band and a Northern California tribe announced earlier this month that they would contribute $500,000 each toward a labor-sponsored ballot initiative that would seek to overturn deals with those casinos, including one signed by Pechanga.

The initiative is being sponsored by UNITE HERE, a service workers union that wants to organize casino workers, and Bay Meadows Land Co., which owns racetracks in Inglewood and San Mateo. Racetracks have long opposed large tribal casinos, which compete with their business.

Supporters need to collect 434,000 signatures by Oct. 8 to put the matter before voters in February.

Pechanga released a poll it commissioned that the tribe said suggests voters favor the agreements. In the survey of 800 likely voters, 74 percent said they would vote for the compacts.

Mark Macarro, Pechanga's chairman, said in a written statement he was disappointed by the ballot initiative and Pala's support for it. His tribe supported its neighbor's deal with the state, Macarro said.

"By comparison, our agreements retain limits and benefits all California by generating billions for state services without raising taxes," Macarro said.

Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com.