California has quite a mixed bag of legalized gaming options. Much of that was on display last year when the state’s voters faced a decision on whether to allow sports betting in the state.
Ultimately Californians rejected Proposition 26, but state legislators are now looking to revive certain aspects from the proposition that might benefit the state’s tribal casinos. The original proposition would have given tribal gaming operators the ability to accept sports wagers. The law would have also included three other provisions – one allowing sports betting at horse tracks and another allowing roulette and dice games at tribal casinos.
A third provision would spell out exactly what kinds of games the state’s card rooms could offer. The two industries have long been competitors, but tribes argued that the card venues have moved into their own gaming territory with games like blackjack.
“If approved, Prop. 26 would have given the state attorney general new powers to crack down on violations of gambling laws, including the power to close facilities that the AG deemed to be violators, and if the AG refused to act, a private party – such as an tribal casino – could file a civil action itself,”
CalMatters.com notes. “Card room operators saw the passage as a death sentence and were relieved when the proposition failed.”
However, legislators are bringing back language from the proposition that would allow tribes to file civil suits against card room operators that they deem are violating gaming law.
Gaming Operators at Odds
Commercial casino-style gaming is officially illegal in California, but most Americans might not realize that when actually heading to the state. There are several legal gaming options including the lottery, horse racing, sweepstakes casinos, and charitable gaming. But there are also legal cardrooms, which feature poker-style gaming.
In these card rooms, players are legally allowed to participate in games that are against other players and not backed by the house. Legalized poker in California dates to 1872 when the state outlined legal games. There are now numerous card rooms around the state, with each charging a fee for players to participate. Some of these rooms have become quite large and host major events like World Poker Tour tournaments.
As part of tribal compacts with the state, many California Indian tribes offer casino gaming. For years, some tribal groups have argued that many state card rooms are playing games that are excluded from them under law. As the San Diego Union-Tribune noted, “the tribes for years have complained to regulators that card rooms are offering illegal games, violating both state law and the constitution.”
A new bill in the state legislature would give the tribes a three-month slot in 2024 to file suit against card rooms they believe are violating state law. The state’s tribes carry considerable clout within the state and are well-funded for political fights.
Card room operators are also apparently gearing up for a fight as well, with Hawaiian Gardens Casino reporting more than $5 million in lobbying funds for the upcoming legislative session, according to the Secretary of State’s office. The 2023 legislative session kicks off this week and many in the gaming industry will be watching to see how this issue plays out.
