After nearly 18 months in the legislature, both chambers of the California legislature have approved a bill that would allow California tribes to sue state cardrooms in order to settle lingering legal questions about which entities are allowed to offer certain games.
SB 549 is still awaiting Gov. Gavin Newsom’s signature but if he does sign it into law, it opens the door for the courts to address what has been a decades-long contentious debate around player-banked table games.
The Assembly passed the measure unanimously, while the Senate supported the bill by a vote of 32-2.
The heart of the issue is whether or not cardrooms are violating tribal exclusivity by offering table games that are backed by players instead of the house. Moreover, if players do not want to serve as a bank, many cardrooms use third-party providers to serve as the bank, which the tribe views as an issue. California residents approved the expansion of casino gaming on tribal lands as part of Prop 1A back in 2000.
The bill would not allow tribes to seek financial compensation from card rooms. Rather, it simply opens the door for the courts to address the issue. Under current law, the tribes are sovereign governments and lacked the legal standing to bring the case.
If tribes want to contest the issue, the timeline is not indefinite. They must file a suit no later than April 1, 2025.
The legislature broadly supported the bill despite a push from local cardrooms to vote against the measure.
If Newsom signs SB 549, the courts can potentially settle an issue that has divided the two groups for years. Moreover, it could put to rest a sticking point in negotiations if and when the state considers potential expansion like sports betting in the future.
