In a big win for native tribes, the California political power just approved a significant gaming update in late summer. Per a recent report, in an important legislative move on Saturday, August 31st, the California Senate passed an amended version of SB 549. This bill is aimed at empowering the state’s tribes with a singular opportunity to legally challenge card rooms in the region. The legislative process saw the bill successfully navigate through both houses and it passed the General Assembly two days prior to the Senate’s endorsement. In the Senate, it was approved with a decisive vote of 32-2 on the final day of the 2024 session, signaling strong legislative support for tribal rights. The bill specifically authorizes California Indian tribes, under certain conditions, to initiate legal actions against licensed California card clubs and third-party proposition player services providers.
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Noted in the same report, James Siva, chairman of the California Nations Indian Gaming Association, lauded the passage of the bill as “fantastic news for California’s tribal nations.” He emphasized that the bill, referred to as the Tribal Nations Access to Justice Act, aims to rectify “historical injustices and provide tribes with the judicial tools necessary to protect their gaming rights, as enshrined in the California Constitution.” Additionally, the tribes seek to ascertain through the courts whether the operation of banked card games by these entities infringes upon state laws and tribal gaming exclusivities. Importantly, the tribes are restricted from seeking monetary damages and must file any lawsuit by April 1, 2025.
Referenced in the same report, the controversy centers around the use of third-party providers by cardrooms to act as the bank in games traditionally reserved for tribal casinos, such as blackjack and baccarat. This model has been challenged by the tribes as a violation of their exclusivity rights granted by California voters in 2000, which permitted tribes exclusive rights to Las Vegas-style gambling.
Per one other outlet, the bill sponsor, Josh Newman, articulated that the legislation seeks to honor the commitments made to the tribes, stating: “This legislation is about doing right by California’s Indian tribes, to whom Californians made a binding commitment in 2000 by passing a proposition which explicitly gives them an exclusive right to certain games in recognition of the historical harm to which they were subject.”
Despite the bill’s progress, there has been vocal opposition from various quarters, including labor unions and municipalities hosting cardrooms, citing potential economic downsides. This includes things like lost revenues and service cutbacks. However, tribes argue these concerns are overstated and emphasize the importance of upholding legal agreements and the integrity of tribal compacts. Additionally, amendments in the General Assembly introduced technical changes and clarifications, including a severability clause ensuring the rest of the law remains in effect even if parts are invalidated. Finally, any court order favorable to the tribes would only take effect for 60 days are being issued, providing a buffer for potential adjustments.
Noted in another source, the Los Angeles Daily News, the second-largest newspaper in Los Angeles and the flagship outlet of the Southern California News Group came out against the bill that would allow California’s gaming tribes to sue cardrooms. The California paper’s editorial board didn’t hold back in its August 20th editorial saying the bill, SB 549, will “make a mockery of our judicial system.” SB 549 was introduced by State Senator Josh Newsman back in February 2023, the article notes. Dubbed the Tribal Nations Access to Justice Act, it would change a legal technicality – tribes are sovereign nations and, therefore, currently ineligible to sue or be sued – to allow tribes to sue cardrooms.
Thanks to Prop 1A passing in 2000, tribes are the only entities in California allowed to offer house-banked card games at their casinos, such as blackjack, baccarat, and slot machines. However, cardrooms offer modified versions of table games by using third-party player proposition services to act as the house. SB 549 would let tribes ask the courts to determine if these games violate state law. And, if they do, courts file injunctions to force cardrooms to stop offering these games.
“The politics here are fairly simple,” the Los Angeles Daily News editorial board wrote. “The tribes want full control over California’s lucrative gambling markets. There’s a lot of money at stake, after all. On the other side are cardroom operators and local governments which benefit from the revenue generated by cardrooms.”
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