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Home Legal & Compliance

California Cardrooms Oppose Tribal Lawsuit Proposal

Staff GHNbyStaff GHN
14 May, 2024
in Legal & Compliance
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California Cardrooms Oppose Tribal Lawsuit Proposal
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The increasing contention between California’s cardrooms and Indian tribes escalates as the new legislative session takes off. The cardrooms are staunchly opposing a proposal permitting tribes to take legal action against them. There is ongoing uncertainty about the legality of California’s almost 100 cardrooms currently in operation.

The Indian tribes believe that cardrooms are blatantly infringing on their exclusive rights to provide banked card games, such as blackjack and baccarat. Commonly, these games are recognized as casino-banked card games. Nonetheless, cardrooms ingeniously maneuvered around this by substituting the traditional casino with player-banks, triggering the tribes’ dissatisfaction.

As clamors and allegations ebb and flow, Sen. Josh Newman established his support for Senate Bill 549 (SB 549) last year. This proposal aims to provide a judicial platform for tribes and cardrooms to resolve their disputes. SB 549 was suggested amidst the cardroom’s insinuations to diversify their games, actions that could cast them as rivals to tribal casinos throughout the state.

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Recently, the progression of SB 549 was revitalized after being delegated to the Assembly Governmental Organization Committee. In reaction to this, the representatives of cardrooms arranged a gathering in front of the Capitol Building in Sacramento, firmly opposing SB 549. Kyle Kirkland, President of the California Gaming Association, noted: “SB 549 is redundant and jeopardizes the budgets of numerous primarily underserved cities across the state amidst a $30+ billion state budget shortfall and economic recession.” He disapproved of the proposition, stating that it benefited only a select few rich gaming tribes who are already exempted from state gaming or income taxes.

A Change in Cardrooms’ Stance

As per the current legislation, tribes might not sue or be sued by businesses or organizations in state courts. However, if SB 549 is passed, it will give tribes the authority to legally challenge cardrooms over the legitimacy of offering games like baccarat and blackjack. Even though tribes could use this opportunity, it does not provide assurance that a state court ruling would favour them.

“It’s intriguing how the story of the cardroom changed gradually from claiming innocence to accusing tribes of attempting to ruin their business to turning a blind eye to our operations as they feel helpless against the tribes operating illicitly.“

Tuari Bigknife, attorney general for the Viejas Band of Kumeyaay Indians

Tuari Bigknife, attorney general for the Viejas Band of Kumeyaay Indians, expressed dissatisfaction with the cardrooms’ changing defense. Bigknife pointed out that cardrooms, while constantly changing their stance, fail to acknowledge that tribes are running legitimate gambling operations. “They’re alleging everything else,” said Bigknife.

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Tags: californiacalifornia tribescardroomsusa
Staff GHN

Staff GHN

We are the editorial team at Gambling Hub, where precision meets insight in gambling industry reporting. Staffed by a knowledgeable team of betting and gaming experts, we are committed to deeply analyzing the dynamic world of gambling with thorough reviews and an impartial perspective. Our mission is to make information about the gambling sector universally accessible, ensuring it is clear and approachable for everyone. In every piece on Gambling Hub, we aim to deliver content that not only informs but also enhances our readers' understanding, helping them navigate the complexities of the gambling landscape.

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