From January 1st, when the law came into effect, it didn’t take long for Native American tribes to initiate legal action against many popular cardrooms across California.
The lawsuits claim these establishments are infringing on the tribes’ exclusive rights to operate certain card games – a privilege granted by the state’s law since 1988.
For tribal leaders, these casinos are not just about gaming but important sources of income that fund much-needed social services such as healthcare, education, and infrastructure.
On the other hand, the counterpart would say that these games are nothing more but a gold mine, regulated by the state.
But is there any point, or the tensions are just the fruit of reality?
Online Casino Games Are Just Much Better
While the legal battles continue to make headlines, online platforms are completely taking over, with more than 400 million active players worldwide. And it’s easy to see why.
Popular games such as live dealer blackjack and roulette add a different layer of excitement that you just don’t get in brick-and-mortar casinos.
Bonuses are way higher, up to 200%, with regular cashback offers, instant payouts, and an amazing game collection of over 3,000 titles, all from top providers.
Whether you’re into live games, poker, or slots, you’ll find tables to match your style, stakes, and mood.
Of course, with RTP of over 99.3%, blackjack is a favorite of many, and a timeless inspiration – even on the court.
California Casino Industry Turmoil
For decades, California’s tribes have relied on exclusive gaming rights granted in 1988, enabling them to operate highly profitable games like blackjack and pai gow poker.
And with a lot of money in the game, it’s obvious why the case is going to the court.
The dispute centers on Senate Bill 549, which finally gave tribes legal standing to challenge everyone on their way.
But, in contrast, card room operators maintain that their operations fully comply with state law and have been approved by regulatory authorities.
They see the lawsuit as a bid to eliminate competition, noting that cardrooms contribute significant tax revenues that support local budgets.
With millions of dollars and critical funding for tribal and municipal programs at stake, the outcome of this lawsuit could have far-reaching consequences for California’s gamers.
Cities Caught in the Crossfire
Beyond the courtroom, the ripple effects of this battle could be felt in cities across the state. Card rooms generate significant tax revenue, with some municipalities relying on these funds to cover over half of their budgets.
Hawaiian Gardens and Commerce, for example, use this income to pay for essential services like police, fire departments, and public infrastructure.
Hawaiian Gardens, in particular, sees nearly two-thirds of its budget funded by these establishments, illustrating just how deeply intertwined these revenues are with community well-being.
If the court sides with the tribes, the potential loss of revenue from cardroom closures could leave these cities in financial jeopardy.
But, for local officials, the stakes are just as high as they are for the tribes, creating a complex web of interests that goes far beyond the gaming floor.
In 2024 alone, Hawaiian Gardens Casino spent over $10 million lobbying against tribal-backed gaming measures.
Conversely, tribes have consistently outspent cardrooms in political contributions, emphasizing their financial clout and deep commitment to preserving gaming sovereignty.
Legal Milestones That Shaped the Conflict
A landmark case occurred in 1987 with California v. Cabazon Band of Mission Indians. The U.S. Supreme Court’s ruling affirmed that federally recognized tribes had the right to offer gaming on their sovereign land, provided there were no explicit prohibitions under state law.
This victory for tribes led to the Indian Gaming Regulatory Act (IGRA), which outlined the rules for tribal-state compacts, granting tribes exclusivity over casino-style games like blackjack and slot machines.
The second major turning point came with Proposition 1A in 2000, amending California’s Constitution to affirm tribal exclusivity for slot machines and house-banked games.
But, that measure also failed to stop cardrooms from operating contentious table games, keeping the conflict alive.
So much time has passed since then, and our tastes have changed, but the battle is still on.
We’re yet to see how Senate Bill 549 will affect the situation and whether it gives the tribes more power to defend their interests.
This lawsuit could either bring long-awaited clarity or add another layer to the ongoing dispute, shaping California’s gambling future in significant ways.
