In a contentious move that has ignited fierce debate across the state, a newly proposed bill, SB 549, would allow California tribes to initiate lawsuits against cardrooms, claiming that these privately-owned establishments are infringing upon the tribes’ exclusive rights to offer Las Vegas-style casino gambling. As this highly controversial legislation moves through the general assembly, it has triggered a wave of public outcry and intense lobbying efforts from both sides.
The heart of the dispute revolves around the specific format of games offered in these cardrooms. Central to the controversy is whether these cardrooms are effectively bypassing the prohibition that prevents them from operating as the “house” or the “bank.” This legal nuance has become a battleground for what could be significant precedence in the state’s gambling industry.
Protesters made their feelings known in a spirited demonstration, wielding banners with messages such as “No on SB 549!” and “Bad Bet For California.” The chorus of protestors also united in chants of “We’re not fine with 549!” as they listened to impassioned speeches from local politicians and city representatives. The consensus among those assembled was clear: the bill poses a significant threat to the livelihoods connected to California’s cardrooms.
Marcel Rodarte, the executive director for the California Contracts Cities Association, was vocal at the protest, emphasizing the potential negative impacts of SB 549. “SB 549 is a bill that will negatively harm many of our cities that have cardrooms located in their communities. Cardrooms are an integral part of our cities as they provide jobs,” Rodarte stated. This sentiment is shared by many who fear that the economic contributions made by cardrooms could be undermined should the bill pass.
Economic concerns are at the forefront for many. A report from the California Gambling Association suggested that the enactment of SB 549 could jeopardize about 32,000 jobs. The economic ripple effects could force scores of cardrooms to either shut down or significantly downsize. Acting preemptively, these cardrooms have been lobbying fiercely to thwart the progress of this bill.
One of the most visible entities in this lobbying effort is the Hawaiian Gardens Casino, an establishment based in Los Angeles County.
. In 2023 alone, the casino allocated a staggering $9.1 million toward lobbying efforts, making it the second-highest spending entity in the state for such activities, only behind the international oil giant Chevron Corporation.
The Mayor of Gardena, Tasha Cerda, also lent her voice to the opposition during the protest, underscoring the critical role cardrooms play in local economies. “Our two cardrooms have been the backbone of our community as they provide vital tax services that our city uses to fund essential public services, which allow us to provide a better quality of life for our residents and communities,” Cerda declared. “Our cardrooms employ over 1,200 residents and individuals from surrounding communities. That’s over $47 million in wages a year.”
The issue is not just a local or isolated affair but has taken on statewide importance, drawing attention from various corners of California’s governance and regulatory sectors. The extent to which SB 549 could reshape the casino and cardroom landscape in California is significant, setting a possible precedent for future legislative battles over gambling rights and operational frameworks.
Casino Reports, an independently-owned publication dedicated to reporting on the regulated U.S. online casino and iGaming industry, highlighted this ongoing debate in its detailed coverage. The outlet focuses on delivering comprehensive news, features, and original reporting on a variety of industry happenings, including business maneuvers, legislative developments, and regulation efforts.
As the debate over SB 549 continues to evolve, it is clear that both proponents and opponents of the bill will remain steadfast in their positions. The outcome of this legislative battle will undoubtedly have lasting implications on the landscape of gambling in California, affecting tribal rights, local economies, and the future operations of cardrooms across the state. With intense lobbying, public protests, and negotiations underway, all eyes will be on the general assembly as it deliberates on the fate of SB 549. The stakes couldn’t be higher for the stakeholders involved, each eager to sway the decision in their favor while navigating the complex legal and economic ramifications that loom large.
