Gambling Legislation

California Tribes Sue Cardrooms Using Newly Implemented Law

California Tribes Sue Cardrooms Using Newly Implemented Law
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The tribes are hoping to shut down cardrooms across the state

A coalition of Native American tribes in California has filed a lawsuit against several cardrooms. The group is alleging illegal gambling practices involving banked games.

The suit, filed in Sacramento’s Superior Court, comes on the heels of the Tribal Nations Access to Justice Act, a recently enacted state law granting tribes the ability to pursue legal action against cardrooms and third-party entities involved in proposition player services.

The tribes argue that these cardrooms have unlawfully profited from banked games like blackjack, baccarat, and pai gow—games where players bet against the house. Under California law, only casinos located on tribal land are permitted to offer such games. Cardrooms, by contrast, are restricted to “round” games like poker, where players compete against one another rather than the house.

According to the lawsuit, cardrooms have circumvented the law by employing third-party proposition player services to act as the bank. These services, the tribes allege, have grown increasingly profitable, paying significant sums to cardrooms to occupy the player-dealer role.

The tribes also claim these services assume responsibilities akin to running a casino, such as providing equipment and covering advertising costs.

The legal action involves seven tribes, all of which operate casinos on their reservations. They are seeking a court order to halt the alleged illegal activities but are not pursuing monetary damages. Their lawsuit targets approximately 100 cardrooms and proposition player service providers across the state.

The California Gaming Association, which represents cardrooms, has yet to issue a comment on the allegations. With 72 licensed cardrooms in the state, this case could significantly impact the legal landscape of California’s gambling industry, especially regarding the interpretation and enforcement of restrictions on banked games.

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