California Card Rooms Win Landmark Court Victory Over Tribes

A long-running battle between California tribes and the state’s card rooms has taken another turn after a Sacramento Superior Court judge dismissed the tribes’ lawsuit challenging the legality of Las Vegas-style table games.

Good to Know

• Judge Lauri Damrell ruled that federal law preempts state-level tribal gaming disputes
• The dismissal follows California’s SB 549, signed by Gov. Gavin Newsom in 2024
• Tribes plan to appeal, arguing state law explicitly gave them standing to sue

Judge Rules Against Tribal Challenge

Judge Lauri Damrell ruled that the tribes lacked standing in the case because federal gambling law supersedes state law regarding tribal gaming. The lawsuit had been filed after Governor Gavin Newsom’s signing of SB 549, which allowed tribes until early 2025 to challenge California’s licensed card rooms in court.

In her written decision, Damrell acknowledged the longstanding dispute but said her authority was limited. She wrote:

“The court is mindful that previous efforts to resolve this longstanding dispute – whether through regulatory action, legislation, ballot initiatives, or litigation – have been unavailing.”

She added that while she recognized the importance of the issue, it was beyond her jurisdiction to issue a final resolution.

The Dispute Between Tribes and Card Rooms

Under California’s gaming framework, tribes hold exclusive rights to offer slot machines and house-backed games such as blackjack. However, card rooms operate similar games by using third-party player banks to back wagers, which effectively sidesteps the exclusivity granted to tribes.

Tribal representatives argue that these workarounds violate their compacts and undermine their gaming rights. Card rooms, meanwhile, maintain that their games comply fully with state law because they are not house-backed.

“Our member card rooms will continue to support good jobs, vital public services, and local economies across California while upholding the highest standards of integrity, accountability, and compliance,” said Kyle Kirkland, the association’s president.

The California Nations Indian Gaming Association however expressed disappointment.

“It’s difficult to reconcile this ruling with the clear intent of the Legislature,” said James Siva, CNIGA chairperson. “Once again, a court has sidestepped the actual merits of the case – effectively denying tribes a fair opportunity to seek justice.”

Impact on California Poker and Gaming

The decision carries major implications for California’s poker industry, which relies heavily on card rooms. Properties like Commerce Casino, Bicycle Casino, and Hawaiian Gardens in Los Angeles, along with Bay 101 in Northern California, are classified as card rooms despite operating large poker venues and hosting World Poker Tour and WSOP Circuit events.

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