The bill could cause some cardrooms to shut down
California Governor Gavin Newsom has signed Senate Bill 549, allowing tribal casinos in the state to sue card rooms that they claim are illegally hosting certain table games like blackjack and pai gow poker. This decision marks the culmination of one of the most contested political battles of the legislative session.
Tribal casinos argue that they hold the exclusive right to offer these games under California law, and their inability to challenge card rooms in court had been a major sticking point for years. With the signing of this bill, tribes can now seek legal rulings on whether these card rooms are violating gambling laws.
This change could have significant financial consequences for cities that depend on cardroom taxes, as these funds make up a substantial portion of their budgets. For example, cities like Hawaiian Gardens and Commerce in Los Angeles County rely on card room revenue for essential services like police and fire departments.
The debate around SB 549 sparked a massive lobbying effort from both sides. Card rooms and tribes spent millions trying to influence lawmakers, with one casino, Hawaiian Gardens, spending over $9 million on lobbying in 2022. Meanwhile, the tribes have historically outspent card rooms when it comes to campaign donations, with contributions of over $7 million to Newsom’s political efforts since 2017.
While the bill gives tribes more power to protect their gambling rights, many California cities are concerned about the potential fallout if cardrooms lose in court. Some fear that losing this source of revenue could force them to make significant cuts to local services.
