That's why many prostitutes are for the decriminalization of prostitution but not for legalization of prostitution, because with decriminalization the sex workers just aren't put in jail or given a police record, and they run their business how they want. However with legalization, you have mandatory HIV?AIDS testing for the girls, and never the guys. Government monitoring, health code requirements, no BBBJs, taxes...etc..etc that all result in higher prices.
Indian Casinos have to sign packs with State Governments, and the state usually tries to make them follow the laws of the state, for example in California alcohol is cut off at 2:00AM, and local employment laws are sometimes forced upon the tribes, even though they are a sovereign nation and can basically do whatever they want, as they are exempt from having to follow our laws. I guess prostitution can happen on Indian property, but Schwarzenegger will try to get a cut of the taxes like he is doing with the slot machines.