Gambling Legislation

California cardroom bill has cardroom operators scrambling

California cardroom bill has cardroom operators scrambling
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Cardroom owners aren’t happy with legislation that would give tribes the ability to sue them

Over 100 demonstrators rallied in Sacramento, California, on Tuesday to protest a bill granting tribal casinos the ability to sue cardrooms.  Senate Bill 549, also known as the Tribal Nations Access to Justice Act, was advanced by the California Assembly’s Governmental Organization Committee despite strong opposition from the cardroom industry.

The legislation centers on a dispute over “California games,” a variation of popular table games where players take turns acting as the dealer. Tribal casino operators argue these games violate their exclusive rights on house-banked card games like blackjack and Pai Gow poker.

While California games don’t feature a traditional dealer taking a cut of the pot, tribes claim companies hired by cardrooms to fill the dealer position essentially function as a house bank. This, they argue, infringes on their legal agreements with the state.

SB 549 would grant tribal casinos a limited window to sue cardrooms in state court, seeking a judge’s ruling on whether California games violate their exclusivity rights.  Typically, sovereign nations like tribes cannot sue or be sued in state courts due to jurisdictional limitations.

The California Gaming Association (CGA), a cardroom advocacy group, expressed strong opposition to the bill. They argue an unfavorable court decision could force many cardrooms to downsize or close entirely, potentially costing the industry upwards of 32,000 jobs.

The bill passed the committee with a vote of 15-1, indicating significant support in the Assembly. However, its fate in the full Assembly and Senate remains to be seen.

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