California Tribes Sue Cardrooms Over Alleged Illegal Gambling
A group of seven Native American tribes in California, all casino operators, have filed a lawsuit against several cardrooms across the state, accusing them of running illegal gambling operations. The lawsuit, filed on January 2, 2025, in the Sacramento Superior Court, centers on cardrooms offering banked card games like blackjack, baccarat, and pai gow poker, which the tribes argue violate state gambling laws.
The Core of the Dispute
The lawsuit claims that California law grants tribes exclusive rights to operate banked card games. In such games, one party, known as the “bank,” assumes responsibility for covering all bets, paying winnings, and collecting losses. The tribes assert that cardrooms are sidestepping these restrictions by using third-party proposition players (TPPPs) as stand-ins for the house. These external players act as the bank in games offered at cardrooms, effectively replicating the casino-style operations reserved for tribal establishments.
According to the tribes, these TPPPs pay cardrooms millions of dollars annually for the privilege of acting as the bank, while also covering operational costs such as equipment, space rentals, and marketing. The tribes argue this setup is a direct violation of their exclusivity rights, granted by state voters, to operate these types of games on tribal lands.
New Law Empowers Tribes
This legal action was made possible by the Tribal Nations Access to Justice Act, which came into effect on January 1, 2025. The law allows tribal nations to sue cardrooms to determine if they are violating state gambling laws and the tribes’ exclusive rights. While the act does not permit tribes to seek financial damages, it enables them to request court injunctions to halt cardroom operations.
The timing of the lawsuit shows the tribes’ urgency in addressing the issue. They filed the case on the first day California courts reopened in the new year, emphasizing the importance of protecting the economic benefits tribal gaming provides to historically marginalized communities.
Cardrooms Defend Their Practices
Cardroom operators have pushed back against the allegations, maintaining that their practices comply with California law and have been approved by the state attorney general.
They argue that their operations support tens of thousands of jobs, generate hundreds of millions of dollars in taxes, and play a vital role in local economies.
Recommended