California judge dismisses tribes' lawsuit against cardrooms in gambling rights battle
A California judge has dismissed a high-stakes lawsuit brought by Native American tribes against the state's cardrooms. The tribes argued that these venues were illegally offering banked-style games like blackjack, which they claim fall under their exclusive gaming rights. The ruling, delivered on 14 March 2026, marks a significant setback in the long-running dispute over gambling control in the state.
The lawsuit, filed on 2 January 2025, targeted multiple cardrooms accused of violating tribal gaming monopolies. But Judge Lauri Damrell ruled that federal law overrides California's attempts to regulate such disputes, shutting down the tribes' legal challenge before a full trial could proceed.
The conflict stems from Senate Bill 549, a contentious measure that became one of the costliest legislative battles in recent California history. Tribes and cardrooms spent millions on lobbying and campaign donations to sway lawmakers, each side fighting to protect its financial interests. Cities like San Jose, which collects around $30 million annually in taxes from cardrooms, have a major stake in keeping these businesses open.
In her decision, Judge Damrell cited the **Indian Gaming Regulatory Act (IGRA)** and the **federal Supremacy Clause** to invalidate SB 549. She ruled that federal law—specifically IGRA—exclusively governs tribal gaming on Native lands, overriding state regulations. The judge pointed to past rulings, including *Rice v. Rehner*, to support her conclusion that California could not enforce its own gambling laws in this case. Tribal leaders reacted with frustration, arguing the dismissal denied them a fair chance to present their full case. Despite this loss, they have continued pushing their agenda in the legislature. In September 2025, lawmakers passed **Assembly Bill 831**, which bans online gaming companies from offering digital sweepstakes—a move tribes see as another threat to their exclusive rights. Governor Gavin Newsom signed the bill into law on 12 October 2025, with enforcement set to begin on 1 January 2026. Cardroom operators, meanwhile, have long maintained their games are legal. They point to decades of approval from California's attorney general and gambling regulators, insisting their operations comply with state law. The industry shows no signs of slowing down, even as tribes explore further legal and political avenues to curb their competition.
The judge's ruling effectively blocks the tribes' latest effort to restrict cardroom operations, at least for now. With AB 831 soon taking effect, the focus shifts to online gaming, where tribes are already moving to protect their interests. The dispute, however, is far from over, as both sides continue to clash in courts and the legislature over control of California's lucrative gambling market.
