Published in cooperation between CasinoBeats.com and The Pajaronian
California tribal casinos have filed a lawsuit to prevent local card rooms from offering certain table games. They are claiming that these establishments are illegally circumventing state gambling laws.
The lawsuit was filed in the California Superior Court in Sacramento following Senate Bill 549, which was signed into law in September 2024. This new legislation, called the Tribal Nations Access to Justice Act, grants tribal casinos the authority to challenge card rooms that operate outside of state regulations.
At the heart of the dispute are the banked games offered by these local casinos. Under California law, only tribal casinos may offer games in which players gamble against the house and not other players, called “banked games.” Card rooms are only allowed to offer “player-banked” games, in which players take turns acting as the bank. However, the lawsuit claims that card rooms have found a loophole and are using third-party proposition player services (TPPPs), which allows them to offer “house-banked” table games like blackjack and baccarat. According to the tribes, this practice is illegal and has led to financial losses for tribal casinos.
The lawsuit has sparked a debate over the future of the casino industry in California, a state with a complicated history of gambling legislative attempts. Tribal casinos are arguing that the card rooms are violating state laws, while card room operators and their patrons claim that they have complied with regulations for many decades and are continuing to do so.
Although sports betting is also illegal in California, the tribal lawsuit shows the ongoing fight for control over the state’s gaming industry. Bettors have to navigate these legal disputes, and seek alternative options like reputable offshore sportsbooks when considering where to place safe online bets. These sites offer a wide range of betting options, including everything from casino games to sports, as well as entertainment and politics.
The California Gaming Association, which represents the card rooms, maintains that the establishments are operating lawfully and that they play an important role in generating tax revenue for local communities. These communities rely on casino-generated revenue for various services and public projects.
The legal battle is also highlighting other tensions within the state’s gambling industry, especially in relation to sports betting. There have been several efforts to legalize sports betting in California, and each has been met with strong opposition and failed ballot initiatives year after year. Tribal casinos have strongly opposed any online and commercial sports betting regulations that will negatively impact their gaming offerings.
The socio-economic impact of card room closures will have negative impacts on local economies. In some cities, such as Hawaiian Gardens, a majority of general fund revenue comes from casino taxes. These communities will face financial hardships should the lawsuit succeed.
Legal analysts suggest that the latest case could set a precedent for California’s gambling laws. If the courts rule in favor of the tribes, card rooms could be forced to stop offering certain games, which would likely result in financial losses and the closure of some facilities. Also, a ruling against the tribes could reinforce the legality of TPPPs, allowing card rooms to continue their current operations.
