By Ryan Sabalow, CalMatters
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Latest Legal Setback for Casino Tribes
Casino-owning tribes in California have invested millions in legal battles, legislative efforts, and ballot measures in attempts to eliminate competition from card rooms. A judge recently halted their latest initiative.
Court Ruling Details
Last year, tribes worked with the California Legislature and Governor Gavin Newsom to pass a law enabling them to sue card rooms. They claimed exclusive rights to Las Vegas-style gambling in the state. However, Superior Court Judge Lauri Damrell dismissed their case, stating that federal gambling law takes precedence over the state measure.
Reactions to the Decision
The ruling was celebrated by the card room industry. Kyle Kirkland, President of the California Gaming Association, expressed satisfaction, noting that card rooms provide important jobs and services. Conversely, tribal leaders are planning to appeal, arguing that the court ignored the legislative intent behind the new law.
Financial Implications
The tribes filed their lawsuit on January 2, the day after SB 549 became effective, arguing that numerous card rooms were illegally offering specific games that hurt their revenues. They contend they received exclusive rights to host table games from California voters to support their communities.
Political Context
The debate over SB 549 was highly contentious, involving significant financial lobbying from both sides. The law gained support from a bipartisan coalition of lawmakers, while smaller groups with ties to card rooms opposed it. Card rooms have previously faced setbacks in court due to standing issues, but this new measure aimed to change that.
What’s Next?
Despite the setback, tribes continue to fight for regulatory changes, recently passing Assembly Bill 831 to combat online gaming threats. Governor Newsom has yet to decide on the bill, maintaining a pending status until early next week.
This article was originally published on CalMatters and is republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
