California Judge Throws Out Tribal Casinos’ Lawsuit Against Cardrooms

A California judge has stopped tribal casino operators from challenging their non-tribal competitors again, dealing another blow to their long fight over who runs casino-style games in the state.

Federal Law Has Priority in California Lawsuit

Sacramento County Superior Court Judge Lauri Damrell tossed out a lawsuit tribal governments filed. They claimed they had the sole right to run Las Vegas-style games like blackjack and pai gow poker. The tribes brought the case under Senate Bill 549 to find out if California‘s commercial cardrooms were breaking state law by offering these games.

Damrell decided that federal law controlling tribal gaming, the Indian Gaming Regulatory Act (IGRA), trumps the state law that allowed tribes to take cardrooms to state court. In her written opinion, the judge recognized how complex and significant this matter was, but stated that federal jurisdiction limited her.

The cardroom industry welcomed this ruling. The California Gaming Association claimed the verdict supports many jobs and helps keep local economies going in cities that depend on tax money from cardrooms. Kyle Kirkland, the association’s president, said the decision would let operators keep giving back to communities while sticking to transparency and compliance rules, reported Cal Matters.

Tribal chiefs expressed strong dissatisfaction. James Siva, who heads the California Nations Indian Gaming Association, slammed the court for avoiding the case’s main issue. His group claimed that lawmakers passed SB 549 to give tribes their overdue opportunity to contest what they view as unlawful gambling activities. Siva stated that the ruling goes against what the Legislature wanted and promised to seek an appeal.

Tribes Look to New Bill in Ongoing California Gambling Feud

The tribes sued in January, claiming many cardrooms across the state offered “banked” card games, cutting into tribal casino profits — money that numerous tribes use to fund key services in their communities. Under SB 549, the tribes did not seek damages or lawyer fees, just a legal decision on whether the disputed games were allowed.

Cardroom supporters argue that their businesses follow state rules and have undergone regular reviews by the attorney general’s office. Towns like San Jose, where cardroom taxes bring in tens of millions of dollars each year, cautioned that a win for the tribes could have put funding for public safety and local programs at risk. This ruling ends one of the priciest policy fights in recent memory.

Both sides poured millions into lobbying lawmakers, with cardrooms launching tough campaigns against legislators who backed the tribes’ bill. Even though the tribes lost in court, the political battle over gambling exclusivity in California is not finished. A new bill, Assembly Bill 831, which aims to restrict online gaming platforms, now waits for Governor Gavin Newsom to sign.