California Cardrooms Challenge Tribal Casinos' Avarice in Legal Documents
California Senate Bill 549, introduced by State Senator Josh Newman, has created a stir in the political landscape of the state. However, it's essential to clarify that this bill is not related to cardrooms or their relationship with gaming Tribes.
As of now, SB 549 has passed the Senate on May 29, 2025, but failed passage at a committee level in the Assembly as of July 16, 2025. Reconsideration has been granted, and the bill is pending further committee review as of July 17, 2025 [1][4]. The bill's author has announced a pause on SB 549 to revisit it in 2026 to address concerns and misinformation about the legislation [3].
The primary focus of SB 549 is the creation of a "Resilient Rebuilding Authority" in Los Angeles County. This authority aims to coordinate wildfire rebuilding efforts and manage purchases of fire-damaged lots to prioritize rebuilding for original homeowners and small business owners [2][3]. The bill originally included affordable housing provisions but primarily seeks to prevent uncontrolled real estate speculation after fires, rather than changing gaming regulations [3].
California cardrooms operate under strict regulatory oversight from both the California Gambling Control Commission and the California Department of Justice's Bureau of Gambling Control. Despite recent speculation, SB 549 does not contain any provisions related to cardrooms or gaming Tribes [1][2][3][4].
The cardrooms have historically used third-party proposition players for games like blackjack, a practice that was considered acceptable in the 80s and 90s but is now under scrutiny. The cardrooms have relied on the inactions of the DOJ, the GCC, and the BGC in their operations, investments, expansions, and offerings of games [5].
In a separate legal battle, seven California gaming Tribes filed a lawsuit against various cardrooms, including The Gardens Casino in Hawaiian Gardens and the Commerce Casino in Commerce, on May 7, 2025. The lawsuits contend that card rooms circumvent the law by employing third-party proposition player services [TPPPs] to simulate house-banked games, thereby infringing upon tribal gaming exclusivity [6].
The court is scheduled to hear arguments on all motions related to the case on August 8, 2025. It's crucial to distinguish between SB 549, which focuses on wildfire rebuilding efforts, and the ongoing legal battle between gaming Tribes and cardrooms.
References:
- California Senate Bill 549
- SB 549 Aims to Help Homeowners Rebuild After Wildfires, Not Change Gaming Regulations
- California's SB 549: Wildfire Rebuilding Authority Bill Paused for 2026 Reconsideration
- California Senate Bill 549: Status and Analysis
- Cardrooms Rely on DOJ, GCC, and BGC Inactions in Operations
- California Gaming Tribes Sue Cardrooms Over Third-Party Proposition Players
- The California Senate Bill 549, despite creating a stir in the political news, is not related to casino-and-gambling or the relationship between cardrooms and gaming Tribes.
- SB 549, in contrast to the ongoing legal battle between gaming Tribes and cardrooms, focuses on creating a "Resilient Rebuilding Authority" to assist with wildfire rebuilding efforts in Los Angeles County.
- While the relationship between cardrooms and their use of third-party proposition players has been a concern in the general-news, the bill's primary focus is not on education, business, or finance related to gaming.
- The failure of SB 549 to pass at a committee level in the Assembly as of July 16, 2025, does not impact decisions or regulations in the realm of education, community news, politics, or the entertainment industry outside of its specific wildfire rebuilding scope.
