California Senate allows tribes to sue cardrooms

Garance Limouzy September 4, 2024

SiGMA news

California Senate allows tribes to sue cardrooms

The California Senate passed Senate Bill 549, known as the Tribal Nations Access to Justice Act, on 31 August, allowing tribes to sue cardrooms over the operation of table games such as blackjack and baccarat.

TPPPS controversy

Tribes have argued that these cardrooms have been illegally offering games that infringe on the tribes’ exclusive rights, diverting significant revenue that the tribes claim is rightfully theirs. California law mandates that only tribal casinos can offer house-banked card games, where the house acts as the bank. However, cardrooms have circumvented this rule by employing third-party proposition player service providers (TPPPS) to act as the bank in these games — a practice that tribes argue violates their constitutionally protected gaming rights.

Judicial access for tribes

Until now, tribes have not been allowed to take these cardrooms to court. If the new bill will not allow tribes to seek monetary damages, it will however enable them to request injunctive relief, potentially forcing cardrooms to cease the use of TPPPS in their operations.

James Siva (pictured above), chairman of the California Nations Indian Gaming Association (CNIGA), views the bill as a historic victory for the state’s tribes. “For over a decade, California tribes have engaged in considerable efforts to defend our exclusive gaming rights guaranteed in the California Constitution,” Siva said. “The passage of SB 549 is fantastic news for California’s tribal nations.”

“This has never been a fight about gaming—it’s always been a fight about civil rights and judicial access for tribes,” said John Christman, chairman of the Viejas Band of Kumeyaay Indians, who sponsored the law. “We are thankful that the vast majority of the legislature finally saw through the political noise and stood on the side of justice and access for our people.”

Next steps

Despite heavy lobbying from the cardroom industry, which vehemently opposed the bill, the Senate passed the measure with a 32-2 vote. The General Assembly had passed the bill earlier in the week with unanimous support. Governor Newsom now has the final decision on whether to sign the bill into law.