California Card Rooms Strike Back Against Gaming Law Supporters
In late October, California Governor Gavin Newsom signed a bill allowing Tribal casinos to sue card rooms over games such as blackjack and pai gow poker.
People playing in a card room. California card rooms fight back over tribal gaming bill.
LISTEN TO THIS ARTICLE:The legislation, Senate Bill 549 (SB 549), faced strong opposition from card rooms but will officially take effect on January 1, 2025.
In response to the new law, card rooms across California launched a targeted campaign against lawmakers who supported the bill. Reports indicate they spent more than $3 million trying to undermine these politicians in the run up to the November elections.
Card Rooms Channel Millions Against Lawmakers
Under California’s state and federal election rules, organizations unaffiliated with specific candidates can spend unlimited amounts to support or oppose individuals. Leveraging this, card rooms turned their sights on four lawmakers instrumental in advancing SB 549.
According to the Livermore Vine, card rooms spent more than $3 million on mail campaigns, text messages, and advertisements to discredit these candidates. The attacks also extended to actively supporting their opponents, making the effort a dual strategy of opposition and endorsement.
This aggressive move marked a dramatic escalation, as card rooms had previously donated just $1.3 million to California politicians since January 2023. In comparison, Indian American casinos contributed $6.3 million during the same period and have provided over $20 million in donations over the past decade.
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Card Rooms Seek Greater Recognition
The card rooms’ campaign succeeded in unseating three of the four targeted lawmakers, highlighting the potential impact of well-funded opposition efforts.
We really don’t want to be the sort of, you know, the Rodney Dangerfield of industries. We want to be respected. We (will) work hard to continue to gain respect and protect our employees, protect our cities, protect our businesses.
While SB 549 aims to safeguard Tribal casinos’ ability to challenge card room operations in court, the law could have unforeseen repercussions. Card rooms contribute significantly to county budgets across California, funding essential public services such as law enforcement and fire departments.
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