Several Native American tribes in California have filed a lawsuit against numerous card rooms across the state, alleging that these establishments are operating illegal gambling games that infringe upon the tribes’ exclusive rights.
Tribes Claim Exclusive Rights to Certain Casino Games
The lawsuit, initiated by seven tribes including the Agua Caliente Band of Cahuilla Indians and the Pechanga Band of Indians, asserts that card rooms are offering “banked” games like blackjack and baccarat. These games, the tribes argue, are supposed to be exclusively operated by them under tribal-state compacts.
Card rooms have been adapting their gaming formats to skirt around legal restrictions. Instead of the house banking the games, they rotate the banking position among players. But the tribes contend that this is merely a facade. In practice:
- The banking role doesn’t genuinely rotate among players.
- Third-party proposition players often act as perpetual bankers.
- This setup creates an experience indistinguishable from traditional banked games.
Legal Backing Under New Legislation
The tribes are leveraging a recently enacted law known as the “Tribal Nations Access to Justice Act” (Senate Bill 549). This law, effective as of Wednesday, empowers tribes to initiate legal proceedings against card rooms they believe are violating gambling regulations.
The complaint emphasizes that these card rooms are “brazenly profiting from illegal gambling,” operating in a manner that contravenes the California Constitution and Penal Code. By partnering with third-party proposition players who effectively serve as the bank, the card rooms are accused of mimicking casino-style gaming found in places like Nevada and New Jersey.
One paragraph here. The tribes allege that such practices not only undermine their exclusive rights but also dilute the regulatory framework intended to govern gambling activities in the state.
Card Rooms Defend Their Operations
In response to the lawsuit, the California Gaming Association, representing the state’s card rooms, issued a statement expressing confidence in their legal standing. They maintain that their members:
- Operate games reviewed and approved by the California Department of Justice.
- Provide thousands of jobs and contribute hundreds of millions in taxes.
- Are licensed and subjected to extensive regulatory oversight.
“This attempt by tribal casinos to shut down lawful competition by tax-paying California businesses will fail,” the association stated.
They argue that the games in question are legal and have been conducted in compliance with state laws for decades. The association believes that the lawsuit is an effort by tribal casinos to eliminate competition rather than address any genuine legal violations.
Historical Context of the Gambling Dispute
The tension between California’s tribal casinos and card rooms isn’t new. In 1984, Californians voted to amend the state constitution to ban banked games. However, a subsequent amendment in 2000 exempted tribes, granting them exclusive rights to operate certain casino games.
Over the years, card rooms have found ways to offer similar gaming experiences without directly violating the letter of the law. By rotating the banker position and partnering with third-party proposition players, they’ve created a gray area that has been a point of contention.
This lawsuit represents a significant escalation in the ongoing dispute, now backed by new legislation that could potentially reshape the state’s gambling landscape.
