A judge has rejected California tribes’ latest effort to curtail card rooms from offering Las Vegas-style table games.
Superior Court Judge Lauri Damrell dismissed the case, claiming federal law covers tribal-related gambling. The move comes after Gov. Gavin Newsom signed SB 549 in September 2024. The bill gave tribes until the start of last April to bring a suit against the state’s licensed card rooms to see if they fall within state law.
Damrell’s decision is now a major setback to that effort. In her ruling, she said that since tribes are sovereign nations, they lacked standing in the lawsuit. Federal gambling laws trumped California law.
“The court is mindful that previous efforts to resolve this longstanding dispute – whether through regulatory action, legislation, ballot initiatives, or litigation – have been unavailing,” Damrell wrote in the ruling.
She added that if it were within her bounds to issue a definite ruling, she would. However, she believes it’s not within the bounds of her power.
“[The court] recognizes the genuine desire, shared by many stakeholders, including the California Legislature, to reach the merits and achieve a final resolution. The court does not take lightly the importance of the issues at stake and, were it within its authority to provide a definitive resolution, it would endeavor to do so.”
Battle Between Card Rooms And Tribal Casinos Continues
Tribes have worked for years to limit the games card rooms can offer. Under California’s legal landscape, the tribes have exclusivity over slot machines and house-backed table games like blackjack. If the state ever legalized online casinos, the tribes would be a major stakeholder in the industry.
Card rooms have circumvented this rule by offering similar, non-house backed games. A card room will have a third-party back the game and employ a dealer to run the game.
It’s possible for local, competing card rooms to back the games at the other property. As a result, it’s no longer a house-backed game. But tribes feel the move still violates their state gaming compacts.
Those affiliated with the California card room industry were pleased with Damrell’s ruling. However, the tribes are appealing the ruling.
“We are encouraged by today’s ruling,” said California Gaming Association president Kyle Kirkland. “Our member card rooms will continue to support good jobs, vital public services, and local economies across California while upholding the highest standards of integrity, accountability, and compliance.”
Case Has Massive Implications On California Poker
While most California tribal casinos have poker rooms of varying sizes, the largest poker rooms in the state are all card rooms.
All of the major Los Angeles area casinos are not technically casinos. Instead, they fall under the card room classification. Properties like the Bicycle Casino, Commerce Casino and Hawaiian Gardens all fall under the card room umbrella. All three have hosted major poker tournament series like the World Poker Tour and the World Series of Poker Circuit.
In Northern California, Bay 101, which recently re-appeared on the WPT schedule with its historic shooting star series, is also a card room. If the tribes win the appeal, and can take action against individual properties, it could dampen the state’s live poker scene.
Thunder Valley Casino is the only California tribal casino home to major poker tournaments.
But the tribes aren’t worried about those series. They are seeking to limit the properties’ offerings.
“This outcome is especially troubling given that it was a state law enacted just last year that explicitly gave tribes standing in state court,” said California Nations Indian Gaming Association chairperson James Siva. “It’s difficult to reconcile this ruling with the clear intent of the Legislature, and once again, a court has sidestepped the actual merits of the case – effectively denying tribes a fair opportunity to seek justice.”
