California SB 549 is currently moving through the State Assembly in Sacramento. The primary sponsor of the bill is Sen. Josh Newman (D) from CA-29 (Fullerton). The very short synopsis of SB 549 is that it seeks to create a 4-month window at the start of 2024 during which Native American tribal organizations may pursue relief in California state courts. The relief in question stems from the tribal position that games such as Baccarat, Blackjack, and others should not be permitted at non-tribal cardrooms. California law does not permit the house to bet against the player in such games, and so cardrooms which offer such table games are actually in a brokerage position between players and a third-party corporation when bets are placed.
SB 549 completely overlooks the fact that over 10,000 people are employed at cardrooms across the state of California, some of which have been in operation for 40 years or more. Cardrooms are also important sources of revenue for local governments. Cardrooms provide concierge service for events and some operate significant hotels. If SB 549 passes:
This bill would authorize, for a very limited period of time, various parties to seek a court determination regarding the legality of the above discussed arrangement. In support of this bill the author states:
Most are familiar with the maxim from civics class:“The Legislative branch passes laws. The Executive branch effectuates them. The Judiciary interprets them.” This bill allows California’s Native American gaming tribes to ask the judiciary to resolve the longstanding dispute over whether certain controlled games operated by California card clubs are illegal banking card games and whether they infringe upon tribal gaming rights. Even opponents acknowledge this dispute exists. Allowing the judicial branch to resolve it is milder than asking the Legislature to resolve it by introducing controversial legislation, or asking the people to resolve it, by way of an expensive and divisive ballot initiative.”
https://trackbill.com/s3/bills/CA/2023/SB/549/analyses/assembly-judiciary.pdf (6)
The author of bill SB 549 is taking a highly dismissive attitude on the referendum process that is also contemptuous towards the idea of allowing voters to decide via ballot measure. It sounds like a cynical attempt to justify regulatory capture. Proposition 26 would have enabled tribal gaming interests to petition state courts to resolve the table game question at the center of SB 549. Both Proposition 26 and Proposition 27 failed at the ballot box in 2023. The people of California have spoken recently on this issue and it seems very cynical for Sen. Newman to sponsor a bill in 2024 that would contradict the outcome of the 2023 referendums. Based on legal precedent, SB 549 would set in motion a path of events that would obligate California courts to rule in favor of tribal gaming interests. Removing table games such as baccarat from cardrooms would put over 10,000 jobs at risk in the gaming and hospitality sector from Commerce Casino, The Gardens, and Parkwest Bicycle Casino alone. The San Jose area and other Bay Area communities also stand to lose significant tax revenue if SB 549 becomes law.
The status, summary, and full text of SB 549 may be found at:
https://legiscan.com/CA/text/SB549/id/2828682
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