Licensed card rooms in California are facing legal action from Native American tribes who claim the establishments are providing illegal banked games. Typically found in tribal casinos, these games mimic the Las Vegas gambling format by pitting players against the house.
The lawsuit comes in the wake of the Tribal Nations Access to Justice Act, a newly enacted law that grants tribes the authority to sue card room operators and third-party proposition player service providers for alleged violations of state gaming laws.
The Core of the Controversy
The tribes allege that the card rooms have skirted California’s gaming regulations by partnering with proposition player services—third-party companies that act as the house, collecting losses and paying out winnings. This, they argue, is a direct breach of state law, which restricts card rooms to facilitating “round games” such as poker, where players bet against one another rather than the house.
According to the complaint, these arrangements allow card rooms to unlawfully profit from games like blackjack, baccarat, and pai gow poker. Tribal representatives claim these actions undermine the exclusivity agreements that allow only tribal casinos to offer banked games.
“Defendants brazenly profit from illegal gambling,” the tribes stated in their court filing.
The lawsuit has been filed by seven tribes, each operating prominent casinos in California. All of them argue that the alleged illegal practices by nearly 100 card rooms and proposition player service providers have not only cost them revenue but have also disrupted the integrity of California’s gambling landscape. They include:
- Agua Caliente Band of Cahuilla Indians
- Barona Band of Mission Indians
- Pechanga Band of Indians
- Sycuan Band of the Kumeyaay Nation
- Viejas Band of Kumeyaay Indians
- Yocha Dehe Wintun Nation
- Yuhaaviatam of San Manuel Nation
Setting A Precedent?
The tribes are not pursuing monetary damages in this case. Instead, they are asking for an injunction to halt what they describe as illegal gaming practices by the card rooms. On the other hand, theCalifornia Gaming Association, representing the card rooms, maintains that their members have operated in full compliance with the law for decades. It has argued that ceasing the use of third-party proposition players would lead to significant financial losses, impacting not only the card rooms but also local economies.
Moreover, the stakes of this lawsuit extend far beyond the gaming tables. State and local labor unions have joined forces with the card rooms, highlighting the potential ripple effects on public sector jobs and municipal budgets. Groups such as California Professional Firefighters, SEIU California, and Teamsters Local 630 have voiced concerns about the economic impact if card rooms are forced to curtail operations.
With the Tribal Nations Access to Justice Act now in effect, this landmark case could set a precedent for similar disputes nationwide. And, as always, lots of stakeholders are watching.
