California Tribes Flexing Their Muscles

When California Governor Gavin Newsome signed the Tribal Nations Access to Justice Act in September 2024, it empowered the state's Tribal community to go after its primary competition. Who might that be? The California retail poker room industry is the only thing standing in the way of California's Tribes having significant control over gambling in the state.

What the Tribal Nations Access to Justice Act effectively did was give Tribal leadership the right and ability to sue card room operators. If they decide to go down that path, they would need to target violations of a California constitutional amendment regarding the current Indian compact. In the current compact, Indian Tribes are presumably entitled to complete control over most forms of gambling within the state's boundaries. Only the Lottery Commission and the horse racing industry would be allowed to do business outside of the reach of Tribal control.

Note: There are significant long-term issues connected to this new law. As California plods closer to retail sports betting and online sports betting/casino play, California's Indian Tribes could use this law to again flex their collective muscles.

Focus on the Real Issue

The battle with card rooms would not involve complaints about poker games. After all, poker is generally thought of as a skilled-based form of gambling as opposed to casino games, which are considered "games of chance." The battle would target the availability of modified casino table games like baccarat, roulette, blackjack, and craps in popular poker halls.

This is not a new issue. However, it's been given new life by this new law. In the past, card room operators were protected from Tribal interference because poker rooms are considered properties and businesses of a sovereign nation. The problem was California's judicial system had no jurisdiction over issues related to tribal casinos. This new law changes that.

Should California's Tribal community want to sue, there is a caveat. They can not file complaints or lawsuits one Tribe at a time. In fact, the new law suggests they only get one shot to go after cardroom operators and best do it much like they would a class action lawsuit with all interested parties invited to join the action.

How the Tribes Plan to Proceed

Tribal leadership has been planning for this kind of legal action for months if not years. While there are currently 70+ Indian Tribes that are running retail casinos, it's unclear how many will get involved in a lawsuit. What is clear according to this new law is all filings must be made by April 1, 2025, and suing for prior losses will not be permitted.

What would a ruling in favor of California's Indian Tribes do to California cardrooms? It's not clear. The big question mark would be how much revenue card rooms would lose if they could no longer offer modified table games. If that number is small, most cardrooms would likely continue as cardrooms only. If that number is big, it might mean an end to popular cardrooms throughout the state.