On August 31, 2025, the California Senate approved an amended version of SB549, which had been filed in March 2023 but did not gain significant attention until this past summer. The primary concern for tribes relates to the employment of player-dealers, or third-party providers of proposition player services (TPPPS), which function as the bank in games like blackjack and roulette.
California law and the federal Indian Gaming Regulatory Act grant exclusive gambling rights to Indian Country. Historically, tribes and card rooms coexisted, but the introduction of TPPPS by card rooms in 2007 has led tribes to claim a violation of that exclusivity. The tribes, considered sovereign nations, lacked legal means to take action against the card rooms, prompting the need for this legislative exception.
James Siva, chairman of the California National Indian Gaming Association (CNIGA), stated, "This law simply provides a reasonable solution to a decade-old dispute and provides clarity to tribes, the state and commercial card rooms. This is good and fair public policy for all parties concerned."
He further commented on the significance of this legislation, saying, "For much of California history, tribes have been precluded from having access to justice to defend what was rightfully ours. However, with the signing of this bill, Governor Newsom is making good on the spirit of his apology to tribes in 2019 by allowing us to simply seek justice to defend our rights."
Siva's remarks highlighted broader issues. While the new law grants tribes the ability to sue the card rooms regarding TPPPS, they remain unable to seek legal recourse on other matters that could affect their sovereignty. John Christman, chairman of the Viejas Band of Kumeyaay Indians, expressed gratitude for the bill, stating, "As one of more than 70 tribal leaders who fought for access to the justice system to protect our voter-granted economic opportunities, I am grateful to the overwhelming majority of legislators and the governor for their support of SB 549. California’s past has been tragic for tribes, but this bill represents an important recognition of our rights and renewed commitment to the future of the state’s Native people."
Under the terms of the bill, Indian Country can file one lawsuit concerning the TPPPS issue. The tribes are prohibited from seeking monetary damages, and the legislation specifies that both sides must adhere to the court's ruling. According to the bill, the court can issue a binding declaration, enforce injunctive relief against further operation of controlled games, or grant any other appropriate relief.
The card rooms have actively opposed SB549, arguing that prohibiting the use of TPPPS could drive some card rooms out of business. This outcome would negatively impact tax revenues for cities across California. The largest card room presence is in San Jose, but smaller cities like Commerce, with a population of 11,672, and Hawaiian Gardens, with 13,396 residents, could see their annual budgets cut by at least half if card rooms close. San Jose alone receives approximately $30 million annually, enough to fund about 150 police officers or 133 firefighters.
Uncertainty remains about whether card rooms will close or alter their services if a court sides with the tribes. While the card room industry is relatively small compared to tribal gaming, representing roughly 10% of the tribes' annual earnings, Indian Country reported a $100 million revenue increase during COVID-19 shutdowns. In contrast, many tribal casinos remained operational while card rooms faced a 14-month closure during 2020-21 due to state restrictions.
