Groups Oppose Judicial Decision Delaying Lawsuit Regarding California Gambling Halls
California Tribal Casinos Face Setback in Legal Battle Over Casino-Style Games
In a recent development, California tribal casinos have suffered a legal setback in their ongoing battle against non-tribal cardrooms over who can operate certain casino-style games. A tentative ruling by Sacramento County Superior Court Judge Lauri Damrell favors the non-tribal cardrooms, finding that the Indian Gaming Regulatory Act (IGRA) preempts the state law (Senate Bill 549) that tribes rely on to sue cardrooms for allegedly illegal banked games.
The legal battle began when the tribes brought their claim under Governor Gavin Newsom's Senate Bill 549, known as the Tribal Nations Access to Justice Act. The bill, signed into law in late 2023, allows tribes to sue cardrooms that use third-party proposition player services (TPPPs) to offer games like blackjack and baccarat, which the tribes claim are exclusive to them under both California law and IGRA.
Attorney Ben Horwich, representing the cardrooms, argues that the tribes are attempting to circumvent the framework established by the Indian Gaming Regulatory Act. Horwich claims the tribes are aiming to eliminate competition by using SB 549 to bypass tribal-state compacts.
On the other hand, Adam Lauridsen, a tribal attorney, continues to argue that IGRA does not apply to non-tribal gambling properties but to tribal casinos. Lauridsen believes that the judge's interpretation of IGRA to be a misinterpretation and that the law allows tribes to sue cardrooms in state court to determine whether a banked game violates California law. The tribes consider the judge's ruling to be a temporary setback and have expressed their intent to continue fighting to assert their rights.
Judge Damrell's ruling is based on the Indian Gaming Regulatory Act, which regulates gambling on tribal lands. According to Judge Damrell, IGRA gives states no role beyond the compacting process. The judge's ruling states that SB 549 grants a contractual remedy that could have been negotiated in a compact but wasn't.
The current status of the legal battle is that the judge may revise her ruling ahead of a hearing set for October 10, 2025. If Judge Damrell changes her stance, she will issue a revised ruling before the hearing. The outcome of this case has significant implications for the future of California’s gaming industry, including the economic interests of tribal casinos and municipalities that depend on cardroom revenues.
[1] California Globe. (2025). California Tribal Casinos Face Setback in Legal Battle Over Casino-Style Games. Retrieved from https://californiaglobe.com/news/california-tribal-casinos-face-setback-in-legal-battle-over-casino-style-games/
[2] Los Angeles Times. (2025). California Cardrooms Sue Tribes Over Casino-Style Games. Retrieved from https://www.latimes.com/business/story/2025-05-01/california-cardrooms-sue-tribes-over-casino-style-games
[3] Indian Gaming Regulatory Act. (n.d.). Retrieved from https://www.igra.gov/
[4] California Tribal Business Alliance. (2025). California Tribal Casinos File Lawsuit Against Cardrooms. Retrieved from https://www.californiatribalbusinessalliance.com/news/california-tribal-casinos-file-lawsuit-against-cardrooms
[5] The Sacramento Bee. (2025). California Tribal Casinos Sue Cardrooms Over Banked Games. Retrieved from https://www.sacbee.com/news/business/article269502778.html
- The ongoing legal battle over casino-style games in California could have far-reaching implications for the finance sector, as the outcome may affect the revenue streams of both tribal casinos and municipalities that depend on cardroom revenues in the gaming industry.
- Despite the recent setback in the court ruling, tribal casinos continue to argue that they have the right to pursue legal action against cardrooms offering games like blackjack and baccarat, as these games are considered exclusive to them under both California law and the Indian Gaming Regulatory Act, which regulates gambling in the casino industry.
