In a significant development regarding a lawsuit filed by a coalition of seven tribes, California card rooms have agreed to produce surveillance footage from their operations for a critical date—December 28, 2024. The footage, pertaining to specific games referred to as "Subject Games," will be gathered between 12:00 AM and 11:59 PM. Should this footage be incomplete, additional recordings from December 31 will be provided. If neither date yields sufficient footage, the involved parties will discuss additional options for preserving the necessary video material.
The court stipulates that all footage must be obtained from cameras providing an overhead view of the Subject Games. This order received approval from Judge Lauri A. Darnell on January 14. The Sacramento Superior Court is currently hearing the lawsuit, which was officially filed on January 2.
The tribes' argument centers around the legality of games offered by card rooms, particularly regarding the use of third-party providers of proposition player services (TPPPS). Under Proposition 1A, only tribes have the legal right to offer house-banked card games, representing a direct challenge to the card rooms, which claim their games are player-banked and therefore within the law.
Since 2007, California card rooms have employed TPPPS—independent companies licensed by the state that act as the bank during card games, catering to players who may not have the means or desire to do so themselves. Currently, 23 licensed TPPPS providers exist, and card rooms maintain that this arrangement is legitimate as these providers operate independently from them. However, reports highlight complex relationships between the card rooms and TPPPS, which raise questions about the legality of the games offered.
Tribes have resisted the TPPPS arrangement since its inception nearly two decades ago but lacked legal grounds to challenge it until the passage of SB 549. Signed into law by Governor Gavin Newsom on September 30, this legislation granted tribes a singular opportunity to pursue legal action against California's 87 card rooms, with a filing deadline of April 1. Without hesitation, the tribes initiated their lawsuit.
Card rooms have voiced concerns over the potential negative impact of their closure on local economies that depend on the revenue generated from these establishments. To retaliate against supporters of SB 549, card rooms invested $3 million to influence the November elections, resulting in the defeat of three out of four lawmakers who backed the bill.
Keith Sharp, a lawyer representing Hawaiian Gardens Casino, expressed the card rooms' desire for respect in the industry, stating, "We really don’t want to be the sort of, you know, the Rodney Dangerfield of industries. We want to be respected. We will work hard to continue to gain respect and protect our employees, protect our cities, protect our businesses."
