California Passes Law Granting Casinos the Right to Sue Competing Cardrooms
In Los Angeles County, there are some long-standing cardroom casinos that locals believe could be in jeopardy following a new law that was passed that will now allow Native American-owned casinos to sue them.
Los Angeles, California. California law allows casinos to sue cardrooms.
LISTEN TO THIS ARTICLE:The law allows Native American casinos to sue these cardrooms should the casinos believe these cardrooms are impeding state law, which allows exclusivity to tribal casinos for banked card games.
Now, cardrooms like those located in Commerce and Hawaiian Gardens, which provide revenue sources for their areas, could be in trouble. For example, the cardroom located in Hawaiian Gardens employs around 1,100 people and generates $13 million in tax revenue annually. Hawaiian Garden Mayor Victor Farfan said, “The casino keeps us afloat financially.”
How the New Law Works
The law, SB549, also known as the Tribal Nations Access to Justice Act, passed in the California Senate 32-2. Since then, Governor Gavin Newsom has signed it into law.
This came about as Native American-owned casinos in California believed that these cardrooms were hiring third-party services to act as the bank for their card games, which, to them, was a loophole in the California Constitution, which bans all types of New Jersey and Las Vegas-like gambling.
“For much of California history, tribes have been precluded from having access to justice to defend what was rightfully ours,” said James Siva, a member of the Morongo Band of Mission Indians and chairman of the California Nations Indian Gaming Association, which supported the measure.
The Senator who sponsored the bill, Josh Newman, said it was simply to allow tribal casinos to have their day in court to clarify legal boundaries.
As to the possible impact if, in fact, a court finds in favor of the tribes, I have an immense amount of sympathy for the workers and other affected community entities. This is a matter of law and not of policy.
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Speculation on Local Job Markets
Many groups and individuals throughout the state emphasize the impact this could have on jobs. “The measure could easily force card rooms out of business,” Keith Sharp, the California Cardroom Alliance president, said in a letter. He mentioned this law could result in a loss of $500 million to the state, meaning less money spent on education, public health and more.
The group is expected to file a lawsuit. The California Gaming Association mentioned this could impact up to 32,000 jobs.
This bill will only throw government budgets into uncertainty and make a mockery of our judicial system. Weaponizing the legislative process so that one special interest group can try to drive out perceived competition is silly on its face.
RELATED TOPICS: Regulation
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