California Tribal Nations Sue Cardrooms for Alleged Illegal Casino-Style Gaming

California Tribal Nations Sue Cardrooms for Alleged Illegal Casino-Style Gaming

By Marcus Bennett

January 2, 2025 at 11:07 PM

Seven California tribal operators have filed a lawsuit against the state's cardroom industry, alleging illegal gambling operations that violate both state constitution and penal code. The suit was filed on January 1, 2025, in California Superior Court.

Game show at California casino

Game show at California casino

The lawsuit specifically targets "California games," which are versions of casino table games like blackjack and pai gow poker. While these games attempt to circumvent the ban on house-banked games by taking a rake and offering rotating dealer positions, the tribes argue this system is merely a facade.

Key points of the tribal operators' argument:

  • The games don't actually require dealer rotation
  • Single players can bank indefinitely
  • Third-party proposition players (TPPPs) act as de facto banks
  • These practices violate tribal exclusivity rights on house-banked casino games

The lawsuit follows the recent signing of the Tribal Nations Access to Justice Act by Governor Gavin Newsom, which enables tribes to seek declaratory relief through the courts. While monetary damages cannot be claimed, tribes can now challenge the legality of cardroom operations.

The coalition includes prominent tribes such as:

  • Agua Caliente Band of Cahuilla
  • Pechanga Band of Indians
  • Kumeyaay Nation
  • San Manuel Nation

Attorney Adam Lauridsen, representing the tribes, emphasizes that the California Constitution grants tribes exclusive rights to offer banked games in tribal casinos. The tribes have contributed significantly to the state budget through gaming-compact payments and community services.

The California Gaming Association warns that restricting California games could force many cardrooms to close, potentially eliminating thousands of jobs.

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