A new bill in California is stirring controversy by allowing tribes to sue cardrooms, claiming that these privately owned establishments are infringing upon their rights related to Las Vegas-style casino gambling, which they have exclusive access to in the state. Currently under consideration in the general assembly, the bill has prompted protests, with participants displaying banners that say "No on SB 549!" and "Bad Bet For California." As demonstrators chanted, "We’re not fine with 549," they listened to speeches from local politicians and city officials who warned that the legislation could adversely affect California's cardrooms.
The bill made headway on July 3 when the Assembly Governmental Organization Committee voted in favor of it. Marcel Rodarte, the executive director of the California Contracts Cities Association, voiced concerns at the protest, stating, "SB 549 is a bill that will negatively harm many of our cities who have cardrooms located in their communities. Cardrooms are an integral part of our cities as they provide jobs."
The heart of the dispute revolves around the game formats used in these cardrooms. The key question is whether these establishments are bypassing restrictions against acting as the “house” or the “bank.”
The potential impact of the bill is significant, with the California Gambling Association estimating that it could lead to the loss of around 32,000 jobs. The legislation could force many cardrooms to shut down or reduce their workforce. Cardrooms have been actively lobbying against SB 549.
For example, the Hawaiian Gardens Casino in Los Angeles County invested $9.1 million in lobbying activities in 2023, making it the second-highest contributor among lobbying groups that reported to state regulators, with only the large oil company Chevron Corporation spending more.
Gardena Mayor Tasha Cerda emphasized the importance of cardrooms in her city's economy during the protest, saying, "Our two cardrooms have been the backbone of our community as they provide vital tax services that our city uses to fund vital public services which allow us to provide a better quality of life for our residents and communities. Our cardrooms employ over 1,200 residents and individuals from surrounding communities. That’s over $47 million in wages a year."
