Just a little over a month into the new year, California tribes are still on the offensive when it comes to dominating state gaming revenues. Per a recent national report (CBS), on their first opportunity since a new law took effect Jan. 1st, seven casino-owning Native American tribes filed suit in Sacramento County last month against dozens of California card rooms. This is now opening a new front in one of last year’s most expensive political battles. Now, millions of tax revenues that pay for city services such as police and road repairs could be in jeopardy. The tribes’ suit alleges that the gambling halls scattered across California are illegally offering card games such as blackjack and pai gow poker that cut into the tribes’ gambling revenues.
In this report, SBS will be going over what to look for from the latest gaming news coming from the Golden State along with some additional notes and info regarding California wagering.
According to the same report, the tribes have a clear agenda when it comes to their lawsuit. “Defendants brazenly profit from illegal gambling,” the tribes said in the opening line of their lawsuit. In a statement, a cardroom industry representative said the cardrooms are “in full compliance with the law.” Moreover, the article notes, “this attempt by tribal casinos to shut down lawful competition by tax-paying California businesses will fail,” the statement said.
Also covered in the report, the suit would not have been possible if Gov. Gavin Newsom hadn’t signed Senate Bill 549 in September. Tribes say California voters years ago gave them the exclusive rights to host the disputed table games, which they use to benefit historically disenfranchised tribal communities. However, because the tribes are sovereign governments, they lacked legal standing to sue the state’s 80 or so privately owned gambling halls. The bill gave tribes a three-month window to sue card rooms starting January 1st. They filed the lawsuit on the first day California courts opened for business in the new year.
Under the bill, the article says, tribes cannot receive any money or attorneys’ fees from the lawsuit. Instead, judges will only decide whether card rooms can continue to offer the disputed games. The stakes are high since some cities receive nearly half of their budgets from taxes on cardrooms, meaning a tribal victory in court could jeopardize money for police, firefighters, and other local services. For example, nearly two-thirds of the budget for the small city of Hawaiian Gardens and almost half for the city of Commerce, both in Los Angeles County, come from local card rooms. Additionally, San Jose City Councilmember Sergio Jimenez told lawmakers in July that the city receives $30 million each year from card rooms.
Jimenez would go on to say that this allotment from card rooms is enough to fund 150 police officers of 133 firefighters. Additionally, he said that money’s in jeopardy if the tribes end up prevailing in court. The card room industry claims the games are legal and that the attorney general’s office has approved each of them over the years. Also, the report says, the card room industry claims the games are legal and that the attorney general’s office has approved each of them over the years.
The suit comes after tribes persuaded lawmakers last year to pass SB 549 in what was one of the most costly political fights of the two-year legislative sessions that concluded last summer. Additionally, a bipartisan coalition of lawmakers, many of them with large tribal casinos in their districts, pushed for the gambling measure, while a smaller group of lawmakers with card rooms in their districts opposed it. It followed a failed 2022 sports betting initiative that the tribes spent millions of dollars to sponsor and that included a similar provision that would have let the tribes sue.
Additionally, the report notes that the opposing gambling interests donated at least $4.3 million to the 120 members of the Legislature since January 2023, according to the Digital Democracy database. Facing what they saw as an existential threat, card rooms responded to SB 549’s introduction with a massive lobbying blitz. In 2023, Hawaiian Gardens Casino alone spent $9.1 million on lobbying, the second-highest amount reported to state regulators. Only the international oil giant, Chevron Corp., spent more. Then, despite losing the battle over SB 549, the cardroom industry spent more than $3 million in the lead-up to the November election in retaliation against four lawmakers who played key roles in the bill’s passage.
Once you are all up to speed in relation to the latest gaming news and notes coming from the Golden State, make sure to check out the excellent array of information for you at SBS. Of course, for even more analysis on the topic covered here, the California sports betting guide has your back with all of the latest updates coming from the region. Conversely, for those who are eligible and looking to maximize their wagers, look no further than the best bonus betting sites rundown which goes over a variety of great info. This includes a catalog of the latest and greatest welcome bonus offers. Finally, if you qualify and are on the go, the best betting apps breakdown is a must-read page where you can learn more about the perks of mobile betting and how you can stay on top of the action.
About the Author
Chris Boline is a Reno-based business development professional and freelance sports writer with over a decade of experience covering the NBA G League, Los Angeles Chargers, and national football and basketball. His expertise spans the NFL, NBA, UFC, boxing, golf, and motorsports, along with topical news, marketing, and promotional content. A proud University of Nevada graduate, Chris earned both his BS in Management & Economics (2015) and MBA (2023). He is active in the Reno community, serving on boards such as the Nevada Sagebrush Alumni Chapter, NCET, and the College of Business Alumni Association, where he was past president (2022–23). Notable honors include: - Two-time University of Nevada Alumni Chapter of the Year honoree (2017, 2021) - 2021 NCET Professional Services Organization of the Year (with TAC) - 2016–17 Reno Bighorns MVP, awarded by the Sacramento Kings - Nevada Press Association Award for Best Sports Column (2015) - Former Editor-in-Chief of The Nevada Sagebrush Chris blends his passion for sports with a strong background in sales, marketing, and community engagement.
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