Newsom Signs Bill Allowing California Tribes to Sue Card Room Competition

California Governor Gavin Newsom signed Senate Bill 549 – also known as the Tribal Nations Access to Justice Act – into law on Friday, opening the door for tribal interests in the state to make their case against the state’s many commercial card rooms.

The legislation authorizes a one-time state court action, which will be able to determine whether California’s card rooms are offering banked card games that violate the state’s laws and the exclusive gaming rights granted to Native American tribes. 

Bill Gives Tribes Standing to Sue Over Disputed Games

The bill was initially sponsored by the Viejas Band of Kumeyaay Indians. Many tribes in California that offer casino gaming have long argued that the commercial card rooms, which offer both poker and versions of card games such as blackjack, are illegally offering games that are meant to be exclusive to tribal gaming facilities.

As sovereign governments, the tribes lacked the legal standing to sue the privately owned card rooms, about 80 of which currently operate throughout the state of California. Now, the tribes will be able to have their day in court on this question.

“As one of more than 70 tribal leaders who fought for access to the justice system to protect our voter granted economic opportunities, I am grateful to the overwhelming majority of legislators and the governor for their support of SB 549,” John Christman, chairman of the Viejas Band of Kumeyaay Indians, said after Newsom signed the bill into law. “California’s past has been tragic for tribes, but this bill represents an important recognition of our rights and renewed commitment to the future of the state’s Native people.”

While the bill enjoyed bipartisan support in California’s legislature, there were also lawmakers on both sides of the aisle who came out against the bill. The contentious nature of the measure followed a massive lobbying campaign on both sides, with the Hawaiian Gardens Casino card room in Los Angeles County spending $9.1 million on lobbying alone in 2023. 

Cities Say Card Rooms Provide Critical Municipal Revenue

Card rooms – and many of the cities who host them, such as San Jose – have argued that a successful lawsuit from California’s tribes could devastate their municipal budgets, as some cities rely heavily on taxes and fees from the card rooms to fund local government. In July, San Jose City Councilmember Sergio Jimenez told state lawmakers that the city receives $30 million each year from its card rooms.

Card room owners have maintained that their games are legal under California law, and that they believe they will prevail in court. However, they have expressed concerns that the card rooms have no avenue to sue tribal gaming facilities in response, and have noted that tribal governments make nearly ten times as much money from gambling as the card rooms do.

The legislation and a potential lawsuit over the status of card rooms is the latest chapter in the fraught history between California’s varying gaming interests. Native American tribes, card rooms, and the horse racing industry have often been at odds with each other, which has scuttled attempts to introduce online gambling or sports betting to the state.

While Governor Newsom signed a package of bills favored by Native American tribes on Friday, he hasn’t universally backed efforts to expand tribal gaming in his state. In August, Newsom came out against two proposed casino projects from the Koi Nation and the Scotts Valley Band of Pomo Indians, sending a letter to the US Department of the Interior to outline his opposition.

(Image: Eric Thayer / AP)