But tribes are governed by federal laws, as proponents point out. Tribal governments also have their own gaming boards and security. And the initiative lets state inspectors check private areas of the casino on demand. Both sides defend their positions on the tax issue. This happens directly and indirectly.
Casinos do pay some taxes, such as unemployment insurance.
But they pay no state or federal corporate income taxes. Neither does the California Lottery, said Manion, the tribal spokeswoman. Businesses like the cafe depicted in the ad pay about 43 percent in corporate income taxes, Christian said. But because tribes must use gambling profits for roads, housing and other services, this is in effect a 100 percent tax that finances sovereign Indian governments, supporters said. Staff writer Sam Delson and the Associated Press contributed to this report.