The battle over gambling rights in California rages on, with Governor Gavin Newsom now signing a new law that allows tribes to sue cardrooms. Senate Bill 549 permits the tribes that run casinos in the state to proceed with legal action against cardrooms illegally offering player-banked games like baccarat and blackjack.
extensive legal fees could prove a death sentence
While the tribes believe they have exclusive rights to offer these games, the fact that they are sovereign governments prevented them from suing. The cardrooms, which argue extensive legal fees could prove a death sentence, claim they received approval from the Attorney General’s office to offer the games.
Both sides spent millions of dollars in donations to lawmakers and lobbyists to try to push their own agendas. One property, the Hawaiian Gardens Casino in Los Angeles, spent an eye-watering $9.1m doing so, the second-most of any party in the state, while tribes have made donations totaling $4.3m.
Governor Newsom has received $7.1m from tribes since he first ran for the gubernatorial position in 2017, versus $252,400 from cardrooms.
Many cities across the state rely heavily on the tax revenue from privately-run gambling facilities. San Jose, for example, gets about $30m annually from the industry, which equates to the wages of about 150 police officers.