CA native tribes allege gambling halls offer illegal card games

Updated February 3, 2025
Updated February 3, 2025By Chris Boline
california betting news february 2025

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. 

Lawsuit takes aim at cardroom loopholes in the state

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. 

Card rooms have a critical space in CA tax ecosystem

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. 

Additional notes regarding California wagering updates

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. 

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About the Author

Chris Boline
Chris Boline

As a devout aficionado of sports, Chris Boline has carved a career within the athletic realm. A skilled scribe, he boasts a decade-long portfolio that encompasses coverage of the NBA G League, the Los Angeles Chargers, football and basketball across the country. Beyond his professional pursuits, Chris is deeply invested in his community and dedicates his leisure hours to serving on boards, collaborating with community organizations, and cherishing the company of loved ones. CURRENTLY Business Development and freelance sports writing RESIDES IN Reno, NV EDUCATION University of Nevada BS and MBA EXPERTISE -Sports writing proficiency in: NFL, NBA, UFC, boxing, golf, and some motor sports -Topical news -Promotional and marketing ideas/updates -Business development Summary Chris Boline serves in a business development sales capacity as his day job. He has previously held sales/marketing positions with The Applied Companies (TAC), KTVN 2 News and the NBA G League’s Reno Bighorns, affiliate of the Sacramento Kings. He is a Reno native and is a member of various community boards including the Nevada Sagebrush Alumni Chapter, NCET and the College of Business Alumni Association (COBAA). Chris graduated from the University of Nevada in 2015 with a bachelors in management and economics and also earned his MBA from Nevada in 2023. More about Chris: Past president of the College of Business Alumni Association (COBAA) 2022-23 Two-time honoree for University of Nevada Alumni Chapter of the Year (Nevada Sagebrush Alumni Chapter, 2017 & COBAA, 2021) 2021 NCET award for Professional Services Organization of the Year with TAC Northern Nevada Human Resources Association 2020 Best Places to Work-Northern Nevada, Second Place with TAC 2016-17 Reno Bighorns MVP from the Sacramento Kings The Nevada Sagebrush editor-in-chief 2013-15 Associated Collegiate Press 2015 Four-year Non-daily Newspaper Pacemaker honoree University of Nevada, Reno College of Business Dean's List honoree (5x) from 2011-2015 Nevada Press Association award for Best Sports Column – Community in 2015 Education

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