California Cardrooms and SB 549 (2024)

Cardrooms have lawfully operated in California for over 150 years and are a critical part of the state economy. Yet, cardrooms are now under attack from the tribal gaming industry, which wants a monopoly on gaming in the State.

In 2024, tribal casino interests successfully lobbied the California Legislature to enact Senate Bill 549, which grants select, casino-owning Tribes a special mechanism to sue licensed cardrooms across the State and challenge the legality of games these cardrooms have offered for decades, with express approval from the California Department of Justice. The ensuing lawsuits could have a devastating impact on communities throughout California, which depend on the jobs and tax revenues that their local cardrooms provide.

On October 10, 2025, Sacramento Superior Court Judge Lauri Damrell dismissed the Tribes’ lawsuits against the cardrooms, finding that Senate Bill 549 is invalid because it conflicts with the federal law governing tribal gaming and related disputes (the Indian Gaming Regulatory Act). That decision is now on appeal.

With the recent ratification of Senate Bill 549 (2024), California cardrooms are facing legal suits by select, casino-owning Tribes who were granted a one-time legal mechanism to seek declaratory relief regarding the legality of specific games offered by licensed cardrooms. The ensuing lawsuits could have a devastating impact on communities throughout California where cardrooms reside.

On October 10, 2025, Sacramento Superior Court Judge Lauri Damrell dismissed the Tribes’ lawsuits against the cardrooms, finding that Senate Bill 549 is preempted by federal law (the Indian Gaming Regulatory Act) and the court lacks jurisdiction to hear the dispute.

Legal Filings

Order Sustaining Defendants’ Demurrer Challenging Validity of SB 549

On October 10, 2025, the Court sustained Defendants’ demurrer challenging SB 549 as an invalid piece of legislation. Federal law requires negotiations between States and Tribes over gaming practices to take place through a special compacting process, in which a Tribe bargains with the Governor over the scope of that Tribe’s gaming rights. The resulting compact must be both ratified by the state legislature and approved by the federal government. The Court found that SB 549 improperly circumvents that compulsory process by giving Tribes a special mechanism to enforce their gaming rights that is absent from their compacts. On that basis, the Court ruled that SB 549 is preempted by federal law and Plaintiffs’ lawsuits should be dismissed in their entirety.

Order Sustaining Defendants’ Demurrer

Defendants’ Motions Challenging Plaintiffs’ Complaints

On May 2, 2025, Defendants filed five motions challenging Plaintiffs’ Complaints. Defendants’ primary motion (a demurrer) asked the Court to dismiss the Complaints on the ground that SB 549 as a whole is invalid. Defendants’ second motion asked the Court to strike certain claims and allegations in the Complaints (in the event that the litigation moved forward at all). Two groups of Defendants submitted independent demurrers challenging Plaintiffs’ claims against them on separate grounds.

ABOUT CARDROOMS

California cardrooms are licensed businesses that provide tens of thousands of living-wage jobs to working Californians and generate hundreds of millions of dollars in revenue for local communities.

Beyond their financial impact, cardrooms offer safe, tightly-regulated gaming options for millions of Californians. State oversight ensures that these establishments operate with transparency, enforce consumer protections, and promote responsible gaming.

California cardrooms have offered player-dealer games, including blackjack-style and baccarat-style games, for decades. Those games have consistently been approved by the California Attorney General and endorsed by the Legislature, judiciary, and the voting public.

About SB 549

California Senate Bill 549 (SB 549) was introduced by Senator Josh Newman and co-authored by Assembly member Cecilia Aguiar-Curry. The bill was approved by the Governor and chaptered into law on September 28, 2024.

SB 549 addressed complaints by certain California Indian Tribes that cardroom player-dealer games are “banking games,” and thereby infringe on tribal gaming rights under the California Constitution and current tribal-state gaming compacts. The bill purported to resolve those complaints by giving casino-operating Tribes special standing to sue any licensed cardroom and allege that a player-dealer game offered by that cardroom is an illegal banking game—(regardless of the fact that the Attorney General had already reviewed and approved the lawfulness of each and every cardroom game).

More information, including a timeline of key dates, can be found below.

Timeline

1850

During the Gold Rush, cardrooms begin operating across California. The earliest state laws provide for the licensing and taxation of cardrooms.

1872

California enacts Penal Code Section 330, which prohibits the operation and play of “banking games.” Cardrooms have complied with that rule for over a century by exclusively offering games in which players bet against each other, rather than the cardroom or “house.”

1998

The California Legislature enacts the Gambling Control Act, which establishes a statewide system to regulate legal gambling, with oversight shared by the California Gambling Control Commission and the Bureau of Gambling Control.

2000

California voters approve Proposition 1A, amending the California Constitution to authorize the Governor to negotiate and conclude tribal-state compacts allowing banking card games on Indian land.

2014

Tribes begin filing complaints with the Bureau of Gambling Control, alleging that the games that the Bureau has approved for play in cardrooms are illegal banked games. The Bureau (under the supervision of multiple Attorney Generals) consistently finds that cardroom games are lawful.

2015

Tribes file lawsuits against cardrooms claiming unfair competition. Courts dismiss the suits on the grounds that Tribes lack standing to interfere with cardroom operations.

2015 - 2024

Tribal entities invest heavily in lobbying for laws and regulations aimed at restricting or eliminating cardroom operations, such as Proposition 26, which nearly 70% of California voters rejected.

2024

Tribes successfully lobby for the passage of SB 549.

January, 2025

Seven Tribes use their special standing under SB 549 to file sweeping lawsuits against 76 cardrooms and associated third parties across the state.

October, 2025

Sacramento Superior Court Judge Lauri Damrell dismisses the Tribes’ lawsuits against the cardrooms on the ground that SB 549 is preempted by federal law. The Tribes appeal.