-
Casinos for you
CA Appeals Court Dismisses Tribal Suit Against Cardrooms
By Jeff Osienya Nov 06, 2021 LegalityCalifornia’s Fourth District Court of Appeals shoots down a tribal lawsuit against the state’s card rooms challenging the legality of games okayed by the US Department of Justice. This is the fourth time tribes have lost gaming suits against card rooms.The Fourth District Court of Appeals in California has sustained the ruling made by the San Diego Superior Court to dismiss a lawsuit filed by gaming tribal nations in the Golden State against card rooms in Southern California. The CA Fourth District Apple as Court upheld the decision similarly, citing that the gaming tribes did not have sufficient standing to contest the legality of gambling games okayed by the US DOJ (Department of Justice).
Following the District Court of Appeals ruling last week, Kyle Kirkland, the President of California Gaming Association, a trade body representing the card rooms in the Golden State, said:
Quote“We are pleased that the Court of Appeals affirmed the dismissal of the tribal lawsuit challenging the legality of card room games brought by tribal casinos who contend they have a monopoly over all gaming in California, they do not.”
This isn’t the first time gaming tribes in California have moved to the courts against the state’s card rooms. The Appeal’s Court ruling is the fourth lawsuit that handed the card rooms a win after other victories in the State Legislature and the California Attorneys General against the gaming tribes. With the latest tribal casinos lawsuit dismissal, the California Gaming Association added that:
Quote“If successful, these lawsuits would have devastated many California cities, unemployed thousands of Californians, and decimated vital services on which card room communities rely. Unfortunately, these decisions will not stop tribal casinos in their pursuit of an untaxed monopoly over all gaming in California.”
California Card Rooms Continue to Push Back Against Tribal-Only Gaming Expansion
Meanwhile, some tribes in the Golden State have pumped resources into introducing a state-wide gaming expansion ballot initiative to be conducted in 2022. In addition, the said gaming tribes have been ramping up support for the legalization of craps and roulette at their tribal casinos, along with in-person sports wagering on their tribal premises.
In the eyes of the California Gaming Association, this initiative is not in the best interest of the state’s gaming industry, and so, the card rooms trade body is pushing back against this tribal-focused expansion. The association voiced its sentiments on the initiative, saying:
Quote“Hidden in the initiative is also a provision that would give any person the ability to sue card rooms, their employees, guests, vendors, and communities endlessly to bankrupt card rooms and cities with litigation costs. That initiative hurts all Californians and only benefits tribal casinos.”
If the tribal gaming expansion measure pushes through, it will be the fourth measure regarding online sports betting that California voters will face in the 2022 ballot. This tribal gaming expansion initiative has left card rooms and commercial sports betting juggernauts such as DraftKings and FanDuel out of the equation.
Two of the other three gaming expansion initiatives are being pursued by California card rooms and commercial online sportsbooks. The Card Room Gaming Expansion Scheme measure, backed by the card rooms, seeks to introduce Nevada-style games and in-person and online sports betting. This card rooms-sponsored initiative is seeking gaming expansion in the card rooms and allows for the same expanded gaming in tribal facilities, pro sports teams, and horse racing tracks.
The online sportsbooks-backed measure, known as the Corporate Online Sports Gaming Proposition, is solely focused on sports betting. It is centered on introducing retail sports betting at tribal gaming facilities and allowing online sports betting via team-ups with online betting companies.
Both these measures each require about 1 million signatures each to be part of the ballot questions in November 2022. The Card Room Gaming Expansion Scheme initiative has a deadline of April 12th, 2022, to gather the 1 million signatures. Meanwhile, the Corporate Online Sports Gaming Proposition is still awaiting the green light from the state Attorney General’s office before its sponsors can start collecting signatures.
California Tribes Want to Retain Control of Gaming Expansion in the State
The third of the said gaming measures is backed by a different coalition of 18 tribal nations. Top sponsors of this gaming expansion initiative include Yocha Dehe Wintun Nation near Sacramento, Pechanga Band of Luiseno Indians in Riverside, and the Federated Indians of Graton Rancheria in Sonoma County. This measure already garnered about 1 million signatures back in October 2020, verified by county election officials across the state in May 2021.
This measure will be certified as qualified for the November 2022 ballot on June 30th, 2022, unless it is withdrawn (highly unlikely) by its backers before the said date. It is so far the only gaming expansion initiative that has received full approval from the Attorney General’s office and state residents through signatures to be part of the November 2022 ballot.
The initiative seeks to legalize sports betting in tribal casinos and horse-racing tracks. On top of that, federally recognized tribes in the Golden State will also be allowed to operate dice games and roulette in their tribal reservation lands.
Tribal Nations are particularly against the Card Room Gaming Expansion Scheme and the Corporate Online Sports Gaming Proposition because it would mean that the tribes lose their Class III gaming exclusivity in California. In a letter sent to all federally recognized tribal nations in the Golden State, Wilton Rancherias, the Federated Indians of Graton Rancheria, and the Rincon Band of Luiseno Indians said that
Quote“Such passage would accelerate the legalization of online gaming by non-tribal interests, threatening the existence of Indian gaming as we know it.”
You might also like