In a significant legislative move on Saturday, 31 August, the California Senate passed an amended version of SB 549, aimed at empowering the state’s tribes with a singular opportunity to legally challenge cardrooms. The bill, now approved, is headed to Governor Gavin Newsom’s desk for final consideration.

Legislative journey and approval:

The legislative process saw the bill successfully navigate through both houses; it passed in the General Assembly two days prior to the Senate’s endorsement. In the Senate, it was approved with a decisive vote of 32-2 on the final day of the 2024 session, signaling strong legislative support for tribal rights.

James Siva, chairman of the California Nations Indian Gaming Association, lauded the passage of the bill as “fantastic news for California’s tribal nations.” He emphasized that the bill, referred to as the Tribal Nations Access to Justice Act, aims to rectify historical injustices and provide tribes with the judicial tools necessary to protect their gaming rights, as enshrined in the California Constitution.

The bill specifically authorizes California Indian tribes, under certain conditions, to initiate legal actions against licensed California card clubs and third-party proposition player services providers. The tribes seek to ascertain through the courts whether the operation of banked card games by these entities infringes upon state laws and tribal gaming exclusivities. Importantly, the tribes are restricted from seeking monetary damages and must file any lawsuit by 1 April 2025.

Background and controversy:

The controversy centers around the use of third-party providers by cardrooms to act as the bank in games traditionally reserved for tribal casinos, such as blackjack and baccarat. This model has been challenged by the tribes as a violation of their exclusivity rights granted by California voters in 2000, which permitted tribes exclusive rights to Las Vegas-style gambling.

According to iGaming Business, the bill sponsor, Josh Newman, articulated that the legislation seeks to honor the commitments made to the tribes, stating: “This legislation is about doing right by California’s Indian tribes, to whom Californians made a binding commitment in 2000 by passing a proposition which explicitly gives them an exclusive right to certain games in recognition of the historical harms to which they were subject.” 

Despite the bill’s progress, there has been vocal opposition from various quarters, including labor unions and municipalities hosting cardrooms, citing potential economic downsides such as lost revenues and service cutbacks. However, tribes argue these concerns are overstated and emphasize the importance of upholding legal agreements and the integrity of tribal compacts.

Amendments in the General Assembly introduced technical changes and clarifications, including a severability clause ensuring the rest of the law remains in effect even if parts are invalidated. Additionally, any court order favorable to the tribes would only take effect 60 days after being issued, providing a buffer for potential adjustments.