The passage of Senate Bill 549 into law by Governor Gavin Newsom has significantly changed the gaming scene in California. The state’s gambling industry will undergo a substantial shift as a result of the new legislation, which gives Native American tribes the legal right to sue private card clubs.
In California, tribal casinos and card rooms have long been rivals, especially when it comes to house-banked card games like pai gow and blackjack. Voters awarded the tribes the rights to run these games years ago, and they contend that these card rooms are encroaching on those rights. Due to their sovereign status, tribal nations were not allowed to file lawsuits prior to this law. With the passage of Senate Bill 549, this obstacle has been removed, allowing for lawsuits against about 80 private card clubs around the state.
This new law is seen by the tribes as a way to protect their economic interests. According to CalMatters, tribes claim card rooms are violating California gambling laws, draining money from communities that have already faced historical challenges.
Economic Concerns and Political Pressure
However, many California cities rely heavily on tax revenue from card rooms. Hawaiian Gardens, Commerce, and San Jose are among the cities that could face financial struggles if the legal battles impact card room operations. For example, Hawaiian Gardens receives two-thirds of its budget from card room taxes, and Commerce depends on nearly half of its revenue from the same source. San Jose also brings in around $30 million annually from its card rooms, and local leaders worry about potential cuts to vital services like police and fire departments.
The bill has increased card rooms’ and tribes’ lobbying activities. Although tribes have contributed substantial sums of money to political campaigns, card rooms contend that their operations are legitimate, having received approval from the state attorney general’s office. Even yet, they worry that the cost of litigation may force them to close, particularly since they are unable to countersue legally.
This law is a component of larger initiatives to assist Native American communities. On California Native American Day, Governor Newsom also signed other laws that supported traditional land management techniques and included Native American perspectives into school curricula.
The post California Tribes Gain Legal Power to Contest Private Card Rooms Under New Law appeared first on iGaming.org.