In a significant legislative development, the California Senate on Saturday passed an amended version of Senate Bill 549, a bill that will grant the state’s tribes a singular opportunity to sue cardrooms and determine whether these establishments are violating state law. The bill, which has now cleared both legislative chambers, will proceed to Governor Gavin Newsom for final approval.

At the core of this legislative action is the contentious issue of third-party providers acting as the bank in games such as blackjack and roulette. This practice, tribes argue, infringes upon their exclusive gaming rights granted by California law and serves as a symbol of broader issues surrounding the respect for Indian rights in the state.

Legislative Success for Tribes

The Senate passed the amended bill on the final day of the 2024 legislative session, following its earlier approval by the General Assembly. The General Assembly unanimously supported the proposal, while the Senate passed it with a 32-2 vote.

If Governor Newsom signs the bill into law, California’s tribes will have one opportunity to sue the state’s cardrooms, seeking a legal determination of whether these venues are operating in violation of state law.

Referring to the news as a fantastic one for California’s tribal nations, James Siva, chairman of the California Nations Indian Gaming Association, expressed his satisfaction:

“For over a decade, California tribes have engaged in considerable efforts to defend our exclusive gaming rights guaranteed in the California Constitution. The Tribal Nations Access to Justice Act gives tribes access to justice that has been denied not only in this case but throughout California history.”

The bill, however, comes with certain limitations. The tribes will not be able to seek monetary damages, and any lawsuit must be filed by April 1, 2025. The bill’s text specifies that it authorizes a California Indian tribe, under specific conditions, to bring legal action solely against licensed card clubs in California and third-party proposition player services providers.

The purpose of such an action would be to seek a declaration on whether a controlled game operated by a licensed California card club and banked by a third-party proposition player services provider constitutes a banking card game that violates state law, including tribal gaming rights under the California Constitution. Additionally, tribes can request injunctive relief to prevent the continuation of such practices.

Historical Context and Tribal Rights

The issue of gaming rights has long been a critical matter for California’s tribes. In 2000, California voters granted tribes exclusive rights to Las Vegas-style gambling, which has allowed many tribes to build businesses that support their members and lift them out of poverty.

However, the introduction of third-party providers (TPPs) in 2007 altered the gaming landscape. Cardrooms began employing TPPs to act as the bank in player-banked games such as blackjack, which tribes argue undermines their exclusivity and costs them significant revenue.

Cardrooms maintain that if they are forced to abandon this model, it could lead to financial ruin. However, tribes counter that cardrooms operated successfully under different systems prior to 2007 and should be able to revert to those practices without infringing on tribal gaming rights. According to tribal estimates, the use of TPPs by cardrooms has cost tribes at least $100 million annually.

A Broader Struggle for Rights

The passage of SB 549 is not just about gaming rights; it represents a broader struggle for the recognition and respect of Indian rights in California. Tribes argue that this issue is part of a long history of promises made to them by the state, which have often been broken.

According to Siva:

“All too often throughout history, tribes in California were promised certain treaty rights and even large tracts of fertile land that were taken away from us. In those cases, we were stripped of our ability to defend those rights as we were denied access to justice. If this bill becomes law, it will reflect a new day in California history in regard to the civil rights of this state’s tribal nations.”

The amended version of the bill includes several key provisions. Notably, it clearly states that the state of California is not a party to any action brought under this law. Additionally, should the tribes win a lawsuit, the court order would not take effect until 60 days after the entry of the order. A severability clause has also been added, ensuring that if any part of the law is found to be “invalid or unconstitutional,” the remaining provisions will continue to be enforceable.

Path Forward and Potential Challenges

After stalling for nearly a year, the Tribal Nations Access to Justice Act began gaining traction again in June 2024. Despite opposition from cardrooms, labor unions, and local newspapers in cities with cardrooms, which argued that the bill would result in lost revenue and reduced public services, the tribes remained steadfast in their pursuit of justice.

Tuari Bigknife, attorney-general for the Viejas Band of Kumeyaay Indians commented as follows:

“We’re not moved by the fact that they are not going out there to innovate or find ways to make revenue. The cardrooms have been in existence over 100 years, they have only been doing this illegal gaming since 2007. So there is no reason that they cannot go back to the way it was before instead of trying to do it on the backs of tribes.”

In a related development, the California Assembly also approved Senate Bill 931, sponsored by State Senator Bill Dodd, which ratifies key intergovernmental agreements between the state and Native American tribes for the purposes of gaming. This bill, along with Dodd’s other measure to enhance wildfire safety, now awaits Governor Newsom’s signature.

Source:

“California legislature votes to give tribes their day in court”, igamingbusiness.com, Jill R. Dorson, September 1, 2024.

The post California Legislature Approves Bill Granting Tribes Right to Sue Cardrooms appeared first on Casino News Daily.