California Governor Gavin Newsom has signed into law a controversial measure that will grant the state's tribal nations a one-time window to sue the state's cardrooms over the offering of third-party proposition games, or TPPPs — a workaround that had previously been deemed legal, and one that has allowed the cardrooms to offer some card games other than poker to their customers.
Newsom's quiet signing of Senate Bill 549 comes after the state's legislature approved the bill, now called the 'Tribal Nations Access to Justice Act', passed both the State's Senate and House by wide margins in recent weeks. The bill underwent extensive revisions before being passed. It has now created a six-month window, ending April 1, 2025, for one or more casino-owning tribal entities to file suit against one or more of the state's cardrooms over the legality of the TPPP framework.
Only one such lawsuit will be allowed, meaning that all plaintiffs and named defendants will be gathered into a single complaint. California itself cannot be sued, nor can monetary damages be awarded from the named defendants. The only outcome will be a ruling, likely from a California Superior Courtroom, as to the tribes' claims for over a decade that the cardrooms' TPPP games violate the tribes' exclusivity over non-poker, casino-style games.
Tribal groups laud SB 549's signing
In a statement issued by the California Nations Indian Gaming Association (CNIGA) following Newsom's signing of the bill, tribal representatives celebrated the procedural victory. “We are incredibly pleased that the California Legislature and Governor Newsom have turned good legislation into law,” said CNIGA Chairman James Siva. “This law simply provides a reasonable solution to a decade-old dispute and provides clarity to tribes, the state and commercial cardrooms. This is good and fair public policy for all parties concerned.”
“As one of more than 70 tribal leaders who fought for access to the justice system to protect our voter-granted economic opportunities, I am grateful to the overwhelming majority of legislators and the governor for their support of SB 549,” added Viejas Chairman John Christman. “California’s past has been tragic for tribes, but this bill represents an important recognition of our rights and renewed commitment to the future of the state’s Native people.” The Viejas Nation originated the concept that became SB 549.
One of the leading groups representing the cardrooms' interests, the California Gaming Association, had repeatedly urged Governor Newsom to veto the bill, citing the significant effect an adverse ruling would have on the state's cardrooms:
Jobs at risk
Some cardrooms earn as much as half of their total gaming revenue from the TPPP games, and a negative ruling from that perspective could wipe out many hundreds of jobs. Most of California's cardrooms are also located in smaller cities and towns that depend on cardroom-derived revenue to pay for large shares of local services.
Many smaller cardrooms might not survive such an economic impact should TPPP games be barred. PokerOrg's own Lee Jones visited one such 'mom-and-pop' cardroom not long ago to get a better feeling for how the issue might affect the industry. Besides the loss of rooms and jobs, it would also result in making it harder for many Californians to find live poker games, especially in isolated or rural areas.
