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California is bracing for a ton of big sports battles this rest of the year. Local-area teams like the Dodgers, 49ers, Rams, and Lakers all have championship hopes on the field or court. But the battles they wage might pale in comparison to the one going on outside the limelight in courts and meeting rooms.
We’re talking about California’s native-owned casinos versus the card rooms. Many folks don’t know this, but the Golden State has two kinds of betting. Most know about the tribal casinos since a ton of other states have this too. But there are also card rooms, which are more specific to the state. These are not owned by Native Americans and they offer strictly table games — no slots.
Both are governed differently too. Tribal casinos are mostly self-regulated and can do as they please within the confines of their compact agreements. Card rooms, however, are hawked over by two different state agencies and have a ceiling on their growth.
It’s safe to say the sides aren’t friendly with one another. The two’s rivalry makes USC vs. UCLA seem like a nothingburger — and it 100 percent is cause this casino rivalry is actually competitive (sorry, Bruins’ fans). Let’s take you into a new bill that could forever change the dynamic of this rivalry.
Don’t Tribes Have Exclusive Rights To Offer Gambling In California?
The above question is at the heart of this matter. Back in 2000, ago, California voters approved Proposition 1A, giving the tribes the exclusive right to offer Las Vegas-style casino games like slots and table games (everything except sports betting apps). Since there’s no sports betting in California, offering casino gaming is a big opportunity.
But here’s the thing: card rooms were a thing in California long before Proposition 1A — and we mean long. California’s history almost always starts with the gold rush in 1849, hence the name 49ers, one of the most popular NFL teams. Welp, those same settlers that rushed to mine gold also developed a card-plating habit, thus creating card clubs. This tradition has lasted ever since.
Since tribes got the right to offer betting, they’ve long questioned the legality of card rooms. How can they offer it if betting is illegal outside of native land? Well, through a loophole, that’s how. There’s always a loophole with these things, isn’t there?
California constitution says the card rooms can’t accept wagers from customers — and they technically don’t. The card clubs sidestep the rule by using third parties as the “house.” These third-party employees typically sit at tables next to the dealer. This third party does nothing outside of collecting players’ bets and paying out winnings. That’s how simple it is to get around California’s constitution.
However, a potential lawsuit threatens to upend that loophole card rooms have been taking advantage of for decades upon decades. Here’s exactly what’s going on:
New Bill Could Open Up Court Rooms
Senate Bill 549 is pending. If approved, this bill would allow the tribes to sue card clubs over violating the tribes’ exclusive rights to Las Vegas-style gambling. Of course, the tribes are lobbying hard for Bill 549. The tribes are major donors in Northern California where most of these casinos reside in and around.
But of course, the card clubs are spending to oppose this bill. Heck, The Hawaiian Gardens Casino in Los Angeles County — a big player among the card rooms — spent a staggering $9.1 million on lobbying last year, the second highest amount reported to state regulators.
“If you’re going to attack us and try to take away what we’ve had for decades, then we’ve got to fight back,” said Keith Sharp, the card room’s general counsel. “And so we’re going to spend the money that we need to spend. I mean it’s about survival at this point.”
Of course, the tribes have put their own PR spin on the situation.
“It’s not about killing card rooms. It’s not about killing cities. It’s about protecting what’s ours,” said Tuari Bigknife, the attorney general for the Viejas Band of Kumeyaay Indians.
It’s true, the natives do depend on the casinos to sustain their communities. California’s history with Native Americans is not a pretty one, to say the least. And given the state’s left-leaning voter base, it’s probably not a smart idea to oppose a minority group optics-wise. That’s us being honest about the situation too cause everything is political these days.
The natives have tried to go through the courts in the past. However, lawsuit after lawsuit has been thrown out on the technicality of procedural grounds. SB 549 would take this issue to the courts for the first time ever.
SB 549 is currently under review by the Assembly Governmental Organization Committee, which oversees gambling legislation. While a hearing date has yet to be set, those monitoring the bill anticipate it will be considered later in April or May.
In other words, we’re in for a long battle ahead. It’ll go past 2024, but the seeds are being planted here with lobbying efforts. Who will win? We’ll see, but the odds certainly favor the tribes right now if we’re being honest.
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