Card Rooms Invest $3M in Campaign Against California Lawmakers

Late in October, a bill that enabled Tribal casinos in California to sue card rooms over games such as pai gow poker and blackjack the latter offers, was signed into law. Despite pushback from card rooms, Senate Bill 549 (SB 549) was signed into law by Gov. Gavin Newsom, enabling Tribal operators to take their claims against card rooms to court, effective from January 1, 2025.

In light of the lawmakers’ actions, card rooms across California decided to go on a revenge spree against legislators that helped SB 549 become a law. A new report suggests that the process involved the investment of more than $3 million against several lawmakers, who faced attacks ahead of the November election.

$3M Poured in Opposition of Lawmakers Who Supported Gaming Bill

Under the current federal and state election rules in California, organizations that are not related to a particular candidate can spend unlimited sums in opposition or support. Considering that such practice isn’t illegal, card rooms decided to have their revenge against four lawmakers who helped push forward the bill that permits Tribal casinos to sue them.

As announced by Livermore Vine, more than $3 million was spent by the card rooms in opposition of four politicians. The efforts included mailing campaigns, text messages and other forms of attack, including advertisements. Not only did the card rooms focus on smearing the four candidates, but they also helped support their direct opponents.

This was a surprise move, considering that since January last year, not counting the $3 million, card rooms have only donated $1.3 million to politicians across California. In contrast, the donations of the state’s Tribes were $6.3 million for the same period. Over the last decade, Tribal operators have also donated more than $20 million, an astronomical sum when compared to the contributions of card rooms for the same period.

Card Rooms Want to Be Respected

The retaliation effort of the card rooms resulted in success, considering the defeat of three out of the four candidates they opposed. The defeat demonstrated the power of investing in opposition and the unexpected results such actions may bring.

According to Keith Sharp, the lawyer of a Los Angeles County-based card room called Hawaiian Gardens Casino, those efforts want to send a clear message that card rooms want to be respected by lawmakers. “We really don’t want to be the sort of, you know, the Rodney Dangerfield of industries. We want to be respected,” he explained. Moreover, Sharp said: “We (will) work hard to continue to gain respect and protect our employees, protect our cities, protect our businesses.”

While the bill that enables Tribal operators to challenge the card rooms’ games offering in court protects them, it may ultimately bring unintended consequences. This is because card rooms provide vital funding to counties across California, helping finance local services, including law enforcement and firefighters.