Cardrooms are already subject to strict regulatory oversight. Businesses and personnel must obtain licenses and approvals from the California Gambling Control Commission (Commission) and the Bureau of Gambling Control (Bureau) within the Department of Justice. Extensive regulations govern their operations.
The bill disregards the deep tradition of deference to agency discretion. State agencies such as the Bureau are a building block of how the State of California exercises its sovereign law enforcement authority in pursuit of the public interest. SB 549 hands state agency authority over to commercial interests, which is a matter of concern.
Voters overwhelmingly rejected Proposition 26 in November 2022, which contained a very similar special interest private cause of action. This renewed assault on the Bureau’s authority is worse: Proposition 26 at least required private litigants to first give the Bureau an opportunity to pursue enforcement itself. Here, the Bureau isn’t even involved in any way.
The court proceedings unleashed by SB 549 would be wasteful and impractical. The bill says almost nothing about how its unprecedented cause of action would work. But it would be a huge undertaking: Any tribe can challenge any game operated by any cardroom. Every action under the statute—even those involving different games at different cardrooms—will be consolidated into one massive proceeding. Most cardrooms are small businesses, but SB 549 allows powerful and well-resourced tribal interests to drag cardrooms and others into court hundreds of miles from home.
SB 549 could have serious implications for state commerce. California cardrooms spur more than $5 billion of annual economic activity, employ tens of thousands of workers, and generate roughly $500 million in tax revenue annually. The unpredictable SB 549 proceedings would lead to years of market uncertainty that could have major economic consequences.
August 1, 2024
Regardless of whether the Interior Department approves a casino resort on the outskirts of Windsor, there are ample opportunities to gamble in California.
August 14, 2024
El proyecto de ley SB 549 del senador Josh Newman es una legislación que supuestamente dará acceso a tribus que tienen necesidad de recursos económicos.
By Kevin Smith | December 7, 2023
More than 100 LA-area cardroom employees and supporters gathered Wednesday, Dec. 6 in Fullerton to protest a bill they fear could fuel wide-ranging job and revenue losses for their industry.
December 7, 2023
In a gathering of over 100 Los Angeles-area cardroom employees and supporters on December 6 in Fullerton, concerns were voiced regarding a proposed bill they fear could lead to job and revenue losses for their industry.
By Brian Hews | December 8, 2023
Last year, California voters rejected Proposition 26, a ballot measure that would have allowed tribal casinos to run roulette and dice games while dictating the kinds of games the California cardrooms could offer.
By C.J. Pierre | December 13, 2023
Los Angeles-area cardroom employees and supporters took to the streets recently to protest legislation filed by a local lawmaker.
Join cardroom employees, cities, community leaders, union representatives and others in saying No to SB 549.