The AP questioned the donation because Schwarzenegger made a promise during the 2003 recall campaign not to accept campaign contributions from groups that negotiate directly with his office. He specifically identified Indian tribal gambling as among those special interests.

A top political aide to Schwarzenegger said Wednesday that the governor would return the money promptly.

"After reviewing the nature of the business and realizing there is a connection to a potential Indian gaming location, we feel it is most appropriate to return the funds," said Marty Wilson, who oversees fundraising for Schwarzenegger's political committee, called the California Recovery Team.

Company officials said Wednesday that the donation was intended to support the governor's political agenda in the upcoming special election - not the casino project.

Alan Waskin, senior vice president and general counsel of Yuba County Entertainment, said the company has a variety of business interests in California.

"The purpose of the donation was not to primarily back the governor but to back his initiatives that we think are important to the business community," Waskin said.

Federal regulators must approve the casino project before it can proceed. But if federal approval is given, the tribe would eventually need to negotiate a gambling compact with the governor's office to open the casino.

Critics of the governor said he never should have taken the donation.

"It just shows that the governor's fundraising is on automatic pilot," said Jamie Court, president of Santa Monica-based Foundation for Taxpayer and Consumer Rights. "Only when there's a spotlight cast on his activities will he ever think about returning the money."

© 2005 The Associated Press

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