LA Daily News Calls Out Bill Giving Tribes Legal Grounds to Sue Cardrooms

Article by : Erik Gibbs Aug 29, 2024

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The Los Angeles Daily News has taken a strong stance against a proposed bill that would give California’s gaming tribes the legal authority to sue cardrooms in the state. The bill, known as SB 549, has created controversy as it moves through the legislative process, with the newspaper’s editorial board expressing significant concerns about its implications for the judicial system.

SB 549, introduced by State Senator Josh Newman in February 2023, is titled the Tribal Nations Access to Justice Act. The bill seeks to alter a legal technicality rooted in the sovereign status of tribes, which currently prevents them from suing or being sued in most cases. If passed, the bill would allow tribes to sue cardrooms, particularly over the legality of certain games offered by these establishments.

The debate centers around the exclusive rights that California tribes have to operate house-banked card games like blackjack and baccarat, as established by Proposition 1A in 2000. While cardrooms in the state cannot directly offer these games, they have found a workaround by using third-party player proposition services to act as the “house.” This approach has long been a point of contention between tribes and cardrooms.

SB 549 would empower tribes to take legal action against cardrooms, asking courts to determine whether these modified games violate state law. If found in violation, courts could issue injunctions to stop cardrooms from offering these games, potentially leading to significant financial repercussions for cardroom operators and the local governments that benefit from their revenue.

In a pointed editorial published on August 20, 2023, the LA Daily News criticized the bill, arguing that it would “make a mockery of our judicial system.” The editorial board suggested that the true motivation behind the bill is financial, stating, “The tribes want full control over California’s lucrative gambling markets.”

The piece highlighted the tension between the tribes and cardroom operators, noting that both sides have substantial financial interests at stake. Meanwhile, California residents who enjoy playing card games are caught in the middle of this legal and political battle.

The timing of the editorial is crucial, as SB 549 has been gaining momentum in the California Assembly after passing the Senate in May 2023. The bill recently received its second reading in the Assembly on August 20, 2023, and is now ready for a third reading, indicating that it is moving closer to becoming law.

The LA Daily News’ opposition to SB 549 underscores the broader debate over the future of gambling in the Golden State. The outcome of this legislative battle could have far-reaching implications for the state’s gaming industry, as well as for the legal and economic dynamics between tribes, cardrooms, and the state government.