In a recent turn of events, California Governor Gavin Newsom signed SB549 on Saturday (28 September), a bill that will grant tribes in the state the ability to sue card rooms over the use of “player-dealers.” This bill allows tribes to file a lawsuit against card rooms by the deadline of 1 April 2025.
The bill initially gained momentum when the California senate passed an amended version on 31 August 2025. Although the bill was first filed in March 2023, it did not gain traction until this past summer. The crux of the issue lies in the tribes’ objection to the use of player-dealers, also known as third-party providers of proposition player services (TPPPS), in games like blackjack and roulette.
Under current state law and the federal Indian Gaming Regulatory Act, Indian Country holds the exclusive rights to gambling in California. While tribes and card rooms have coexisted for years, tensions arose in 2007 when card rooms started utilizing TPPPS. Tribes argue that this infringes upon their exclusive rights, but their sovereign status prevents them from taking legal action against the card rooms without a one-time exception.
In response to the bill signing, California National Indian Gaming Association (CNIGA) chairman James Siva expressed his support, stating, “This law simply provides a reasonable solution to a decade-old dispute and provides clarity to tribes, the state, and commercial card rooms. This is good and fair public policy for all parties concerned.”
The implications of this bill extend beyond the immediate issue of TPPPS usage. While tribes now have the ability to sue card rooms in this specific context, they are still limited in their legal recourse to protect their sovereignty in other situations of potential compromise.
Viejas chairman John Christman commended the legislative support for SB549, acknowledging the historical challenges faced by tribes in California. He emphasized, “California’s past has been tragic for tribes, but this bill represents an important recognition of our rights and a renewed commitment to the future of the state’s Native people.”
The bill allows Indian Country to file a single lawsuit related to the TPPPS issue, with no option for seeking monetary damages. Furthermore, both parties involved must adhere to the court’s decision on the matter.
Despite the tribes’ advocacy for SB549, card rooms have voiced opposition to the bill. They argue that prohibiting the use of TPPPS could lead to closures of card rooms, which would impact local tax revenue and essential services like fire, police, and education.
Cities with card rooms, such as San Jose, are at risk of losing significant tax revenue, potentially affecting public safety and other municipal services. Smaller cities like Commerce and Hawaiian Gardens stand to lose a substantial portion of their budgets if card rooms are forced to shut down.
The outcome of potential closures or changes in card room operations remains uncertain until a court ruling is made in favor of the tribes. As the situation continues to evolve, stakeholders on both sides are closely monitoring the developments and preparing for the implications of SB549.
