What’s old is new again in the California cardroom debate.
After almost a year since the last committee meeting, California legislation related to tribal gaming rights is back in motion. The Assembly Governmental Organization Committee voted 15-1 to advance the legislation.
Tribes want to protect their exclusive gaming rights and have been in a longstanding dispute with cardrooms over certain games like blackjack and baccarat.
Sponsored by Sen. Josh Newman, the bill (SB549) now goes by the name “Tribal Nations Access to Justice Act.” It would give tribes legal standing to resolve their disagreements with cardrooms in California courts, a move closely watched by top sportsbooks. In short, they would be allowed to sue cardrooms.
If the bill passes this year, tribes must file their case no later than April 1.
What Prompted the California Cardroom Battle?
The legal dispute centers on the format of certain card games, specifically whether the facilities act as the “house” or “bank,” and whether this violates the tribes’ rights.
“Nobody knows how the courts will rule,” Newman said. “What you are doing today is not making a decision that favors one side or another. You’re simply allowing for the tribes to have standing to go to a court of law in California to ask that court to rule on this question. And that ruling will be final, that process will be consolidated so it doesn’t expose cardrooms to endless litigation. At the end of this, we’ll have clarity, and that clarity is desperately needed to solve a decades-long dispute.”
Interestingly, this legislation has the same supporters, opponents, and arguments as when it passed the Assembly Judiciary Committee on July 7 last year.
Protests Followed Soon After The California Cardroom Vote
Shortly after the votes were counted, protestors gathered to voice their opposition to Senate Bill SB 549.
More than 100 people, including elected officials and cardroom employees, joined forces in Sacramento to campaign against the proposed legislation. As the bill advances in the general assembly, the tribes—recently courted by gambling giant FanDuel—claim it violates their rights, citing their exclusive rights to Las Vegas-style gambling in California.
Mayors and civic representatives delivered speeches warning that the bill could negatively impact California cardrooms and jobs across the state.
Potential Job Losses a Concern for Detractors
California cardrooms may be forced to shut down or downsize due to the legislation. They have been lobbying strongly against the bill.
The mayor of the City of Gardena, Tasha Cerda, emphasized the importance of the city’s two cardrooms, stating, “These cardrooms are crucial to our community, generating essential tax revenue that funds public services and improves the quality of life for our residents.” She also highlighted their economic impact, noting, “Our cardrooms employ over 1,200 residents and individuals from nearby areas, contributing more than $47 million in annual wages.”
The California Gambling Association warned that the passage of SB 549 could result in the loss of approximately 32,000 jobs.
What’s Next For SB549?
Following the session, the Assembly started its summer break which ends on Aug. 5. This leaves less than a month before the California legislature adjourns on Aug. 31.
During this period, SB 549 must pass through the Assembly Appropriations Committee, the Assembly floor, and likely the Senate GO Committee before final concurrence in the Senate.
Last year, the legislation stalled after advancing from committee just before the summer recess.
The bill’s supporters are optimistic this time will be different. We’ll keep you posted.
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