A coalition of California Native American tribes is suing cardroom operators for offering what they deem to be illegal Las Vegas-style card games.
Represented by the San Francisco-based law firm Keker, Van Nest & Peters. The seven American tribes in California that filed the lawsuit are:
- Agua Caliente Band of Cahuilla Indians
- Barona Band of Mission Indians
- Pechanga Band of Indians
- Sycuan Band of the Kumeyaay Nation
- Viejas Band of Kumeyaay Indians
- Yocha Dehe Wintun Nation
- Yuhaaviatam of San Manuel Nation
For years, the tribal gaming operators, and the tribes themselves, have been voicing their concerns that certain games offered by these venues are not only illegal but also encroach on their exclusive rights to operate house-banked casino games. However, until now, they have been unable to take legal action to stop them.
The complaint reads:
“But for years, California card rooms and their partner third-party proposition players have ignored the law and refused to recognize tribes’ exclusive rights. Instead, they have reaped illegal windfalls by offering banked games that are barred by the California Constitution, California Penal Code, and relevant judicial decisions.”
Senate Bill 549 comes out to play
On September 30, California Governor Gavin Newsom signed Senate Bill 549 into law, giving state tribes the power to sue cardrooms over alleged illegal games.
The new legislation, termed the “Tribal Nations Access to Justice Act,” which took effect on January 1, levels the playing field, allowing tribes to challenge the legitimacy of cardrooms offering games like blackjack and pai gow poker.
According to a Casino.org publication, Adam Lauridsen, an attorney for the tribes, said on Thursday:
“The California Constitution grants tribes the exclusive right to offer blackjack, baccarat, and other banked games in tribal casinos.”
So, back in 2000, California voters gave tribes the exclusive right to offer Las Vegas-style gambling. Since then, tribes have been able to build thriving businesses that employ their members and have even helped them to become self-sufficient.
As bill sponsor Josh Newman put it, the legislation is all about recognizing the historical harms they have faced and allowing them to take control of their own economic endeavors.
As part of exercising their rights, tribes have collectively contributed hundreds of millions to the California state budget through gaming-compact payments and provided crucial services to broad communities.
“Card rooms, on the other hand, have brazenly rejected this voter-approved framework and instead forged ahead with offering illegal Vegas-style games,” continued Lauridsen.
However, the California cardrooms have managed to exploit a loophole, modifying their games to skirt the state’s ban on commercial house-banked table games.
Sometimes, players at card rooms do not want to deal the cards themselves. So, the cardrooms hire someone else to do it for them. The problem is, this hired dealer is always there, and the players never take turns being the dealer. This makes it seem like the cardroom is essentially betting against the players, which is not supposed to happen.
As the dust settles, one thing is clear as the lawsuit unravels: with 84 licensed cardrooms operating in the state, the fate of California’s gaming industry hangs in the balance.
California card room industry fights back against lawsuit
The cardroom industry is firing back with confidence in the face of the lawsuit.
The California Gaming Association, which represents the state’s cardrooms, has issued a statement expressing its conviction that its members are operating within the law, just as they have for decades.
With this in mind, the association is adamant that the lawsuit, which aims to shut down cardroom operations, will ultimately fail. In fact, the association warns that if the lawsuit succeeds, it would have severe consequences, including the loss of thousands of living wage jobs and significant deficits in municipal government budgets.
In an Aug. 20 statement from the California Gaming Association editorial board, they said:
“This bill will only throw government budgets into uncertainty and make a mockery of our judicial system. Weaponizing the legislative process so that one special interest group can try to drive out perceived competition is silly on its face.”
Last year, the card room industry went all out to lobby against a new bill. One cardroom in particular, the Hawaiian Gardens Casino in LA County, went on a spending spree, shelling out $9.1 million on lobbying efforts.
The scale of the lobbying blitz was an eye-opener as to what the cardroom operators had at stake and how far they were willing to go to protect their interest.
