Tribes in California claim that a bill they are supporting in the state legislature will grant them a right that is rightfully theirs. The state's cardrooms, meanwhile, are claiming that SB 549 will force them to lay off workers, putting certain communities in California in financial jeopardy.
Sunset in Hollywood, with palm trees surrounding the street
With the passage of SB 549, the cardrooms would be subject to a single lawsuit from California tribes. The state legislature gave the measure its second reading on August 20, with the support of tribes in regions where cardroom competition is prevalent. The Senate approved an earlier version in May 2023, although it has since undergone revisions. Returning to the Senate is necessary for a version that passes the House. With Saturday's adjournment of the general assembly, the bill has four days to be passed by both chambers.
The law would strengthen the rights that the state has granted to tribes, according to Tuari Bigknife, attorney-general of the Viejas Band of Kumeyaay Indians. The attorney general's office and the California Gambling Control Commission (CGCC) have repeatedly ignored Indian Country's attempts to get these rights for over a decade.
According to Bigknife, who spoke on the "New Normal" webinar on Wednesday (28 August), there have been gatherings, suggestions, and enquiries, but no concrete steps have been taken.
"We have been forcefully removed from court due to the absurd notion that indigenous communities possess these rights, yet lack the legal capacity to assert and defend them," he stated.
Third-party suppliers and player-banked games
The rules of player-banked games, like as baccarat and blackjack, in California's cardrooms are the subject of controversy. Only tribal casinos in California are authorised by law to provide house-banked card games. Even though cardrooms can host these games, they must adhere to the player-banking rule, which states that players must take turns being the bank. Cardrooms, however, switched things up in 2007 by enlisting the help of third-party providers (TPP) in place of traditional banks.
They fear going bankrupt if they are compelled to give up this approach, the cardrooms said. This is becoming a very political subject. Protests, speeches, and lobbying have taken place in Sacramento in recent weeks as the bill makes its way through the legislature. To date, the cardrooms have expended millions in an effort to derail the measure.
The following link is https://twitter.com/CACardRooms/status/1825657135503650915.
“If you’re going to attack us and attempt to take away what we’ve had for decades, then we’ve got to fight back," said Keith Sharp, the cardroom’s general attorney, speaking to Cal Matters. Therefore, we will spend the necessary amount of money. The only thing that matters now is staying alive.
Tribes are losing at least $100 million due to cardrooms, but Bigknife isn't buying it.
"The fact that they are not venturing out to innovate or discover ways to generate revenue does not move us," he stated. Although cardrooms have been around for more than a century, the illicit gaming has only been going on since 2007. Without attempting to do it on the backs of tribes, there is no reason why they cannot return to the previous way.
A window of opportunity presented itself to tribes in California in 2020, when the COVID-19 outbreak and related shutdowns struck. For over a year, the state-run cardrooms were inaccessible. Many tribes have opened with limits in place, and they are self-governing. Bigknife stated that during such time, the casino's revenue increased. According to the tribes, Indian Country loses at least $100 million annually due to the presence of player-banked cardroom games.
Is the legalisation of wagering impacted by the current issue?
Legislation authorising lawsuits isn't a novel concept. Proposition 26, an effort to legalise retail sports betting in 2022 that was unsuccessful, included language that was similar to SB 549. The conflict between commercial operators and the tribes ultimately doomed that endeavour. When Indian Country puts a gaming issue on the ballot again, it will likely want it to be free of any restrictions.
The present state of affairs in the cardroom does, however, have a shaky connection to legitimate sports betting. The cardrooms of tribal casinos are regulated by the CGCC, although the casinos themselves are mostly self-governing. Also, the tribes pay it a specific amount.
With no way to control poker rooms, how can we have sports betting in California?" Bigknife and host Victor Rocha said during Wednesday's webinar. And we're unable to handle cases of money laundering?"
Though rhetorical, the query begs the follow-up question of whether tribes will proceed with a wagering program in the absence of a resolution to the cardroom problem. A stand-along wagering proposition would probably be more appealing to the largest gaming tribes in California, as well as those that are not directly affected by cardrooms.
Bigknife said that the tribes will keep coming back to the legislature in the event that SB 549 is not passed. The thought of polling the people was not discarded from his mind.
Discovering Common Ground in Indian Country
Not only is there more than one location in California that is considered Indian Country. Tribes of varying sizes, cultural backgrounds, and economic statuses call this complex network of reservations—some of which are rather remote—home. The politics of obtaining the majority of those tribes to align has been the toughest element of making progress on SB 549, according to Bigknife. Regarding the legality of sports betting, it is a problem that Indian Country has also been facing.
According to Bigknife, "the civics lesson in California politics" has been the most unexpected aspect for him personally. What matters is the approach and when things are done. The difficulties you face, even when you may not anticipate them.
Even if what a small number of tribes are requesting is very reasonable, it appears that we must unite all of the tribes to grant their wishes. Therefore, we put in a lot of time and effort; the legislature is interested in making sure that all of the tribes are on board. Given the importance of this matter, I believed we could accomplish it with the help of a few indigenous communities.