California Indian tribes want to challenge how cardrooms run games like blackjack and baccarat, and a recent vote was a significant step toward getting their day in court.
Assembly Majority Leader Cecilia Aguiar-Curry co-authored SB549, the Tribal Nations Access to Justice Act, and advocated for its approval. The California Assembly showed strong support by unanimously passing it with a 62-0 vote.
SB 549 grants California tribes a one-time opportunity to sue cardrooms. Backed by tribes facing cardroom competition, the bill passed its second reading in the state house on August 20. An earlier version cleared the Senate in May 2023 but has since been amended. If the House passes the current version, it will return to the Senate.
The state’s cardrooms contend that the passage of SB 549 will force them to lay off employees, potentially plunging some California cities into financial distress.
Top sportsbooks are closely monitoring California’s evolving gaming landscape, as the passage of SB 549 could reshape competition between tribal casinos and cardrooms, impacting betting options and regulations across the state.
What Is the Crux of the California Cardroom Issue?
The issue is how California’s cardrooms run games like blackjack and baccarat. State law only allows house-banked card games at tribal casinos. Cardrooms can offer these games, but players are supposed to take turns being the bank. In 2007, cardrooms started hiring third-party providers (TPPs) to act as the bank.
Cardrooms argue that stopping this practice could bankrupt them. The issue has become very political. Recently, there have been protests, speeches, and lobbying in Sacramento as the bill moves through the legislature. Cardrooms have spent millions trying to stop the bill.
Statewide and local labor unions, including AFSCME California, California Professional Firefighters, SEIU California, and Teamsters Local 630, have joined cities and cardroom employees in urging the state legislature to vote against SB 549. They aim to protect public sector jobs and prevent the bill’s devastating impacts on employees and cities.
Why Are Lawmakers Involved?
As sovereign entities, tribes are not subject to the jurisdiction of state courts, meaning they cannot typically initiate or defend lawsuits in these courts.
Tribes are sovereign nations within California’s borders due to historical land appropriation. Some argue that denying them access to state courts is a fundamental civil rights issue, asserting that everyone should have the right to their day in court.
Tribes have tried to sue cardrooms for offering Blackjack, but their cases were dismissed because they didn’t have the right to sue. Judges have always said that tribes, as sovereign nations, can’t sue in courts. SB 549 would change this, and cardrooms are worried that they could lose their business in court.
The Stakes Are High in the Cardroom Debate
The bottom line: the stakes are high for cardrooms and the tribes. If the cardrooms lose, it could make tribal casinos the only form of gambling establishment in the state.
Despite strong opposition lobbying, the Assembly made a significant statement by passing the bill unanimously, with 17 members abstaining.
We’ll continue to track the developments to see if the debate over cardrooms will once and for all be settled in a courtroom.
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