A new statement opposing plans for a Bay Area Indian casino may have thrown a major monkey wrench in the casino’s future. And it comes from the lawmaker who paved the way for the casino in the first place.

In a two page letter from Rep. George Miller (D-Martinez) to the leaders of the Legislature, Miller states emphatically that he’s opposed to the proposed agreement between Governor Schwarzenegger and the Lytton Band of Pomo Indians.

That agreement, which calls for as many as 2,500 slot machines in a new casino (downsized from 5,000) has been in limbo since last summer. And the Lytton’s right to a casino in the East Bay city of San Pablo all began with legislation written by Miller, and passed by Congress, in 2000.

In his letter, Miller says “If the compact remains in its current form it should be rejected by the legislature.” Miller goes on to say he was told the casino would be “modest” with 1,000 slot machines. And in a swipe at the governor, Rep. Miller says the act of Congress bill did not “obligate the governor to approve a casino of any size.

For their part, the tribe released a statement that claims it was Miller’s input that downsized the original deal. And in a retort to the letter, supporters of the tribe say they were told by Miller he supported the scaled-back agreement.

The Lytton gaming agreement was the subject of closed-door discussions among Senate Democrats earlier this week. This afternoon, Senate President Pro Tem Don Perata told me he thinks the entire issue will be resolved in the Legislature in a couple of weeks. And he says key to a final vote is the need for some sort of criteria for urban gaming in California in general.

None of this bodes well for the Lytton deal. Sources on both sides say there is very little support for the agreement. And if the Legislature rejects the proposal, the tribe could take the state to court.