California Tribes Challenge Card Rooms Over Table Game Legality

News Summary

California’s tribal nations are preparing for a legal battle against local card rooms following the signing of Senate Bill 549 by Governor Newsom. The tribal nations argue that only they should operate banked card games, claiming that community casinos exploit loopholes to offer these games illegally. With potentially significant revenue implications, the outcome could impact numerous local communities reliant on income from card rooms, raising concerns about job losses and essential services funding.

California Tribes Take on Card Rooms: The Battle for Table Game Legality

In sunny California, the state’s tribal nations are gearing up for a legal showdown with local card rooms. This clash comes after Governor Gavin Newsom recently signed Senate Bill 549, which gives these tribal nations the green light to question whether community casinos are playing by the rules when it comes to certain table games. The stakes are high, and both sides are digging in for a fierce battle.

The Core of the Conflict

At the heart of this dispute is the argument that only tribal casinos should be allowed to run banked card games like blackjack and baccarat. The seven tribal nations that have now filed a lawsuit claim local casinos are exploiting legal loopholes to offer these games illegally. For those not in the know, a banked game means the house (the casino) collects a portion of the bets, which is different from the model of community casinos using third-party providers.

These providers effectively act as players in a rotating dealer environment rather than a traditional banked setup. California law prohibits a single dealer from banking all wins or losses, creating a situation that tribal nations argue is unfairly impacting their revenue.

The Impact on Tribal Revenues

Legal representatives for the tribal nations are pointing out that if card rooms are allowed to keep operating in this manner, it could lead to significant revenue losses for tribal casinos. Meanwhile, the card rooms argue they’ve historically operated non-banked games without affecting employment or local businesses. It’s a contentious point, as the economics of gambling in the state are complex and deeply intertwined with local community welfare.

Local Communities at Risk

Take, for instance, Hawaiian Gardens, the tiniest city in Los Angeles County. This little gem relies heavily on The Gardens Casino, which accounts for about 75% of the city’s general funding. The local government uses these funds for essential services like policing and youth outreach programs. Concerns are raised that any changes to the legal standing of card rooms could jeopardize these revenues, leading to dire consequences for city services and employment.

A local employee highlighted how the casino has been a lifeline, particularly during times of personal or community health crises. The connection between card rooms and local economies extends beyond just financial support; cities are concerned about the interconnected well-being of their residents and businesses.

The Broad Scope of Influence

It’s not just Hawaiian Gardens feeling the heat. A significant number of California communities—about 70—rely on the income generated from card rooms. Critics of the lawsuit worry that any progress for the tribes could harm these small towns and lead to job losses in already economically vulnerable areas.

Lobbying and Political Clout

The backdrop to this dispute reveals a complicated landscape of lobbying and political donations. The card room industry spent approximately $9.1 million on lobbying efforts last year, making it the second-highest spender in California, trailing only behind a major oil company. On the flip side, tribal nations have invested around $23.5 million in political donations to California candidates since 2014, underscoring the high stakes involved for both sides.

The Path Ahead

As it stands, Senate Bill 549 is currently pending review by the Assembly Governmental Organization Committee, with no specific hearing date established yet. The tension continues as both parties prepare for what could be a protracted legal fight. Tribal representatives assert that court intervention is crucial to ensure compliance with existing gambling laws and to protect their rights laid out by the California constitution.

With a history rooted back to the Gold Rush—an era when gambling halls took advantage of miners—this ongoing battle isn’t just about revenue; it touches upon longstanding traditions, rights, and community health. As both sides prepare for tough negotiations and possible litigation, many are left wondering how this will all play out. Will the card rooms be forced to change their operations? Or will tribal nations have to find new ways to thrive in California’s competitive gambling landscape?

Deeper Dive: News & Info About This Topic

• Spectrum News: California Tribal Casino Lawsuit
• New York Times: Casinos, California Tribes, Card Rooms
• Lost Coast Outpost: High Stakes Battle
• KCRW: Why Are There Casinos in Hawaiian Gardens and Bell Gardens?
• Long Beach Post: Hawaiian Gardens Casino to Pay Fines