California’s casino industry is marked by a complex interplay of federal law, state regulations, and tribal sovereignty. The Golden State has dozens of tribal gaming locations, but a ban on commercial casinos has led to a unique gaming situation that’s very different from other states like Nevada or New Jersey.
As we are in a time where there are no locally licensed casinos in California, internationally licensed casinos have become a more popular choice for people who want to play the games from left to right and from right to left. This trend has accelerated in recent years, particularly as players discover new platforms, such as the ones reviewed at adventuregamers.com, that offer large game libraries, quick sign-up procedures, and fast withdrawals. By offering gambling licenses under jurisdictions like Malta, Curacao, or the Isle of Man, these offshore options have given California players access to online casino gaming options that wouldn’t otherwise be offered through state-regulated avenues.
On the other hand, the California Tribal casino system is based on the Indian Gaming Regulatory Act of 1988. This act of federal legislation provided the basis for the establishment of Native American tribes to have gaming operations run on their sovereign territory. The law established three classes of gambling, the third of which was Class III and consisted of full-fledged casino operations involving slot machines, blackjack, and other table games.
Gaming compacts are the legal contracts between the tribes and the State government of California. These compacts determine what type of games a joint operation can offer, the share of gaming revenue to be split, and even the standards a casino must operate by. Governor Gray Davis adopted the first tribal-state compacts in 1999 that permitted tribes to offer slot machines and some card games. The compacts have been further negotiated and amended several times since then.
Revenue sharing is an important aspect of such agreements. Tribes that have over 350 slot machines have to pay a share of their gaming revenue into the Revenue Sharing Trust Fund. This revenue is shared with tribes that have fewer gaming machines or none, making for a structure in which tribes that have businesses that prove to be more supported are in a position to help fund smaller tribal communities throughout the state.
The compacts also cover environmental issues, public health and safety needs, and problem gambling programs. Tribes should be responsible in their gaming operations and fund gambling addiction treatment programs. Usually, a compact is for a specific time frame, most often 20 years, and then it must be renegotiated.
California law forbids racetrack casinos off tribal land. Numerous ballot measures have been proposed to expand gaming options, but voters have consistently voted down measures that would have allowed commercial casinos to be established or expanded gaming options beyond tribal facilities. Proposition 26 and Proposition 27 both went down in 2022, keeping the status quo the same.
Card rooms are an extension of the gaming industry in California. Some card games, such as poker, may be provided by these establishments, but they are subject to different regulations than tribal casinos. Card rooms are not allowed to have slot machines or the classic casino games such as roulette or craps. The classics have been around since the days of the Gold Rush and are still famous in cities across California.
The small system has provided a significant economic opportunity for many California tribes. Revenue from gaming has supported schools, health care facilities, housing, and infrastructure improvements on tribal lands. Some tribes have turned into significant employers in their areas, offering employment and economic stability to the surrounding communities.
Some gaming compact issues occasionally end up in the courts. The nature of tribal sovereignty and the right to operate card rooms has resulted in litigation between tribes, the state, and card rooms over matters of exclusivity rights, compact breaches, and tribal sovereignty.
