Seven Native American tribes have filed a lawsuit against nearly 90 cardrooms across California, claiming that these establishments are unlawfully offering banked games such as blackjack and pai gow poker. This legal action, which follows the recent enactment of Senate Bill 549, has the potential to reshape the gambling landscape in the state, particularly affecting local economies reliant on cardroom revenues.

California’s gambling industry has always been a topic of debate, with platforms like casinoapps.com often exploring topics such as the complexities of gambling in the state, including tribal exclusivity. The Californian tribes involved in the lawsuit include prominent groups such as the Pechanga Band of Mission Indians and the Agua Caliente Band of Cahuilla Indians. They argue that cardrooms are infringing upon their exclusive rights to operate certain games, a privilege established by voter-approved measures in previous years. The tribes contend that this illegal competition undermines their ability to generate revenue.

Senate Bill 549, also known as the “Tribal Nations Access to Justice Act,” came into effect on January 1, 2025. The law empowers tribes to sue cardrooms for offering games they allege violate tribal exclusivity. This legislative move was seen as necessary by tribal leaders who have long argued that non-tribal gambling establishments operate without regard for the agreements made under California’s gaming laws.

The implications of this lawsuit extend beyond the tribal communities involved. Many cities across the state including popular tourist destinations like Lake Tahoe and Commerce, that has a high concentration of cardrooms, rely heavily on tax revenues generated from these establishments. For example, cities like Hawaiian Gardens and Commerce depend on cardroom taxes to fund critical public services such as police and fire departments. A ruling in favor of the tribes could lead to significant financial shortfalls for these municipalities, potentially jeopardizing jobs and essential services that residents rely on.

Cardroom operators have responded defiantly to the lawsuit, asserting that they are operating within legal boundaries. They maintain that their games have been approved by state regulators and that they comply with all relevant laws. Industry representatives argue that the lawsuit represents an attempt by tribal casinos to eliminate lawful competition while threatening thousands of jobs associated with cardroom operations.

The legal battle comes at a time when California’s gambling market is already undergoing significant changes. The push for legalized sports betting has gained momentum in recent years, with various stakeholders advocating for legislation that would allow sports wagering at both tribal and commercial venues. However, efforts to legalize sports betting have faced obstacles, including competing interests among tribes and cardrooms.

As this lawsuit unfolds, it highlights the ongoing tensions between tribal and commercial gaming interests in California. The tribes’ assertion of exclusive rights to certain games raises questions about the future of cardrooms and their role in the state’s gambling ecosystem. Should the courts side with the tribes, many cardrooms may be forced to reevaluate their gaming offerings or risk closure altogether. As the legal proceedings progress, both sides are bracing for a battle that could redefine gambling regulations in California for years to come.