The ongoing battle over gambling rights in California has reached a new level, with Governor Gavin Newsom signing a bill into law that allows tribes to sue cardrooms over player-banked games. Senate Bill 549 now permits tribes that operate casinos in the state to take legal action against cardrooms that are allegedly offering games such as baccarat and blackjack illegally.
The tribes have long believed that they have exclusive rights to offer these games, but their status as sovereign governments had previously prevented them from suing. On the other hand, cardrooms argue that the high legal fees associated with such lawsuits could potentially lead to financial ruin for their establishments. They claim to have received approval from the Attorney General’s office to offer these games.
Both sides of the issue have heavily invested in lobbying efforts, with millions of dollars in donations being made to lawmakers in an attempt to sway decisions in their favor. For example, the Hawaiian Gardens Casino in Los Angeles reportedly spent a staggering $9.1 million on lobbying, making it the second-highest spender in the state. In contrast, tribes have contributed $4.3 million to lawmakers.
Governor Newsom, who has received $7.1 million in donations from tribes since his initial run for office in 2017, has been a key figure in the debate. In comparison, he has only received $252,400 from cardrooms, highlighting the significant financial influence tribes have had on his political career.
The impact of the gambling industry on local economies is also a crucial factor in the debate. Many cities in California heavily rely on tax revenue generated by privately-run gambling facilities. For example, San Jose receives approximately $30 million annually from the industry, which is equivalent to the salaries of around 150 police officers.
Overall, the signing of Senate Bill 549 by Governor Newsom represents a significant development in the ongoing dispute over gambling rights in California. The ability for tribes to now legally challenge cardrooms over player-banked games has the potential to reshape the landscape of the state’s gambling industry. The high stakes involved, both financially and politically, underscore the importance of this issue for all parties involved.