- A California judge blocked tribes’ lawsuit against card room competitors, citing federal law over state legislation.
- The ruling protects municipal budgets that rely heavily on card room tax revenues for essential services.
- The dispute sparked one of California’s most expensive lobbying battles, involving millions in political spending.
LOS ANGELES – A Sacramento County Superior Court judge has dismissed a lawsuit filed by California’s casino-owning tribes seeking to shut down their card room competitors, ruling that federal gambling law supersedes state legislation.
Judge Lauri Damrell recognized the importance of the conflict but blocked the tribes’ attempt. On Jan. 2, the tribes filed lawsuits against dozens of card rooms around California, claiming that they were unlawfully providing games like Pai Gow poker and blackjack that reduced tribal gambling profits.
The case stemmed from Senate Bill 549, signed by Gov. Gavin Newsom last year, which gave tribes standing to sue card rooms for the first time. As sovereign governments, tribes previously lacked legal standing to challenge the private businesses in state court.
High Stakes for California Cities
The dispute carries significant financial implications beyond the casinos themselves. Some California cities depend on card room taxes for nearly half their budgets.
San Jose receives $30 million annually from card rooms—enough to fund 150 police officers or 133 firefighters. A tribal victory would have jeopardized funding for essential municipal services across the state.
The tribes argue that California voters granted them exclusive rights to table games years ago, which they use as a critical revenue source for historically disenfranchised communities. Meanwhile, the card room industry maintains their games are legal and approved by the attorney general’s office. The ongoing dispute affects both legal blackjack sites operated by tribes and other gaming establishments.
Political and Financial Battle
The fight over SB 549 became one of the most expensive political battles in recent legislative history:
- In 2023, Hawaiian Gardens Casino spent $9.1 million on lobbying.
- Since January 2023, card rooms have contributed more than $4.3 million to lawmakers.
- Over $3 million was spent by the industry to target lawmakers who backed the bill.
- Bill author Sen. Josh Newman was one of four targeted politicians that lost their elections.
Kyle Kirkland, president of the California Gaming Association, applauded the decision and stated that card rooms will continue to uphold regulatory standards while bolstering local economies and jobs.
Given that state law expressly allowed them standing, the California Nations Indian Gaming Association has called the ruling “especially troubling” and said the tribes intend to appeal. This development continues to shape the landscape for California blackjack betting sites seeking to operate in the state.