The California Senate made a significant move on Saturday (31 August) by passing an amended version of SB 549. This bill would give the state’s tribes the opportunity to take legal action against cardrooms to determine whether these establishments are violating state law. The bill will now head to Governor Gavin Newsom for final approval.
The focus of this legislation is on the use of third-party providers who act as the bank in games such as blackjack and roulette. According to tribes, this issue is representative of a larger problem regarding the lack of respect for Indian rights.
The Senate’s approval of the amended bill came on the last day of the 2024 session, following the General Assembly’s passage of the bill two days earlier. The General Assembly overwhelmingly supported the proposal, with a unanimous vote, while the Senate vote was 32-2. If Newsom signs the bill, tribes will have a single opportunity to take legal action against the state’s cardrooms.
Support for SB 549 was expressed by California Nations Indian Gaming Association chairman James Siva, who stated, “The passage of SB 549 is fantastic news for California’s tribal nations. 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.”
It is important to note that the tribes will not be seeking monetary damages through any lawsuits filed, and all legal actions must be initiated by April 1, 2025.
According to the bill itself, it would allow a California Indian tribe, under specific conditions, to bring an action solely against licensed California card clubs and third-party proposition player services providers 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 constitutional provisions.
In 2000, California voters granted tribes exclusivity to Las Vegas-style gambling, allowing them to establish businesses that provide employment to their members. This opportunity has enabled many tribes to overcome poverty and achieve self-sufficiency.
Senator Josh Newman, the sponsor of the bill, emphasized, “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.”
For the past decade, Indian Country has been asserting that the cardrooms’ use of third-party providers of proposition player services (TPPPS) is a violation of state law and the rights granted to the tribes. The main point of contention revolves around how California’s cardrooms conduct their player-banked games, such as blackjack or baccarat.
California law permits house-banked card games only at tribal casinos within the state. While cardrooms are allowed to offer these games, they are required to be player-banked, meaning that participants take turns acting as the bank. The ongoing debate surrounding this issue underscores the importance of upholding tribal gaming rights and ensuring that all parties are adhering to state law.
