California Bill Allowing Tribes to Sue Gambling Venues Could Be Greenlit Soon

Article by : Erik Gibbs Aug 20, 2024

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A California bill that could impact the state’s gambling landscape is moving closer to becoming law, with just two weeks left in the legislative session. Senate Bill 549 (SB 549), which would grant Indian tribes the right to sue cardrooms over how they offer banked games like blackjack, has advanced to the Assembly floor. This development shows that the bill is being positioned for a possible vote in the Assembly soon.

The bill recently cleared a major hurdle by passing through the Governmental Organization (GO) Committee with a strong 14-1 vote. The committee’s approval suggests a growing momentum behind the legislation, which has been strongly advocated for by the Viejas Band of Kumeyaay Indians. The tribe, which has a vested interest in protecting the exclusivity of tribal gaming operations, has been at the forefront of the push for this bill.

Tuari Bigknife, the attorney general for the Viejas Band of Kumeyaay Indians, expressed optimism about the bill’s progress and hopes to see it passed by the Assembly next week. For the tribes supporting SB 549, the legislation represents a crucial tool to address what they see as unfair competition from cardrooms that offer banked games. These games, which include popular options like blackjack, are traditionally exclusive to tribal casinos under California law.

Cardrooms, however, have been operating these games through a legal loophole, prompting tribal leaders to argue that they are infringing on the tribes’ gaming rights. The ability to sue cardrooms directly would provide tribes with a more powerful legal avenue to challenge these practices and protect their gaming revenues.

Opponents of the bill, particularly those representing the cardrooms, argue that the legislation could lead to a flood of lawsuits that would harm the cardroom industry and the communities that benefit from their operations. They contend that the current legal framework is sufficient and that any disputes over gaming should be resolved through regulatory bodies rather than the courts.

Both sides of the industry play significant roles in the state’s gaming economy. Tribal casinos argue that their exclusive rights to offer banked games are being undermined, while cardrooms claim they are operating within the bounds of the law.

If passed, SB 549 could reshape the legal landscape for gaming in the Golden State, giving tribes a new level of power to protect their gaming operations from what they see as invasion by cardrooms. The outcome could have far-reaching implications for the state’s gaming industry, possibly leading to a flurry of litigation across California.