Powerful tribal casinos and privately owned gambling halls in California are embroiled in an epic legislative battle. Millions of dollars in tax revenues for local cities hang in the balance. The pending legislation, Senate Bill 549, would allow California’s tribes to sue their competitors—private card clubs—over alleged violations of the tribes’ exclusive rights to Las Vegas-style gambling. Card rooms have responded with an enormous lobbying blitz, spending staggering amounts to influence lawmakers. Cities also have a lot at stake, as card rooms contribute significantly to their budgets. The battle reflects the high stakes involved in the state’s multi-billion dollar gambling industry.
Understanding the Conflict
The conflict centers around the legality of card rooms offering games such as blackjack, baccarat, and pai gow poker. A group of tribes contends that these privately-owned gambling halls have been illegally siphoning revenue from historically disenfranchised tribal communities across California. For the tribes, it’s about protecting what they consider rightfully theirs.
Lobbying and Influence
Card rooms have spared no expense in their lobbying efforts. The Hawaiian Gardens Casino in Los Angeles County spent a staggering $9.1 million on lobbying last year, second only to Chevron Corp. in lobbying expenditures. Cities like San Jose and Hawaiian Gardens rely heavily on card room revenues, with the latter city receiving almost half of its budget from local card rooms.
The Tribes’ Perspective
The Native American tribes backing Senate Bill 549 are among the most influential and biggest spending lobbies in Sacramento. Since 2014, they have contributed over $23.5 million to California’s candidates for state office—more than double the amount donated by oil companies during the same period. The tribes see this battle as essential for protecting their interests and preserving their exclusive rights to certain forms of gambling.
The Legislative Arena
Senate Bill 549 is currently pending before the Assembly Governmental Organization Committee, which handles gambling legislation. While a hearing hasn’t been scheduled yet, observers expect it to take place later in April or May. The outcome will shape the future of gambling rights in California and impact the revenue streams for both tribes and card rooms.
