A lawsuit over casino-style games at California card rooms was dismissed by a Sacramento County Superior Court judge last week, marking another step in the ongoing fight between California tribes and the state's gambling halls.
The collective group of tribes sought to prevent casino-style games from being played at gambling halls throughout California through the use of third-party proposition players (TPPP). Tribes in the state claim the sole right to offer such gambling, but TPPPs allow the games to continue through what amounts to a legal loophole.
It's a decades-old fight, as Steve Ruddock points out at Straight to the Point.
"The dispute traces back to 1988, and the passage of the Indian Gaming Regulatory Act (IGRA), which grants tribes exclusive rights to certain casino-style games on their lands through compacts with the state.
"In California, tribes argue that cardrooms have skirted these restrictions by using third-party proposition players (TPPPS) to act as the “house” in banked games, a practice they deem illegal under state law."
Appeal is likely
Tribes were previously unable to sue until Governor Gavin Newsom opened up a temporary window for the case to be decided in court. Superior Court Judge Lauri Damrell dismissed it last week, citing federal law already on the books.
The state's tribes plan on appealing the ruling, a likelihood Judge Damrell acknowledged in the decision.
“I may be wrong, and I expect there will be an appeal, so I welcome the guidance from the Court of Appeal on this as well,” Judge Damrell said while ruling that the lawsuit is preempted by federal law.
City taxes at risk
At the heart of the battle is the interest in tribal revenue weighing against the city taxes collected from gambling halls and card rooms. Some cities draw a large portion of their budget from card room taxes, which fund police, fire, and other essential services for municipalities. Tribes maintain the games are illegal, but the state's attorney general's office regulates and approves them.
It has been an expensive legal battle for both sides, with large tribal casinos pushing the issue in their districts against lawmakers in the areas of the state that depend on city taxes from card rooms. Tribes have also been fighting against sweepstakes gaming in the state, having supported Assembly Bill 831 to ban the practice. Governor Newsom signed that bill this week.
