SACRAMENTO – On January 2, seven gaming tribes, including the Agua Caliente Band of Cahuilla Indians and Pechanga Band of Mission Indians, filed a lawsuit in Sacramento Superior Court against over 70 California cardrooms, including Lake Elsinore Casino Cardroom. The lawsuit, filed under Senate Bill 549 (SB 549), alleges that the cardrooms are offering banked games in violation of state law and tribal gaming rights.
Banked games are gambling activities in which the house or an entity acting as the house serves as the bank. This means the house covers all bets and pays out winnings, unlike “player-banked” games where players bet against one another, and the house takes a fee. Common examples include blackjack and baccarat. In California, banked games are typically prohibited in non-tribal cardrooms under state law, as tribal casinos often have exclusive rights to offer these games through state-tribal gaming compacts.
The gaming tribes allege that cardrooms are operating banked games in violation of these restrictions, infringing on tribal gaming rights and California law. However, cardrooms maintain that they are offering lawful, state-regulated games that have been reviewed and approved by the California Department of Justice (DOJ).
Kyle Kirkland, President of the California Gaming Association, responded:
“We are confident that California’s cardrooms are operating table games in full compliance with the law, just as they have done for decades. Cardrooms offer tens of thousands of good-paying jobs, pay hundreds of millions in taxes, support local communities, are licensed by the State, subject to extensive regulatory oversight, and offer legal games that have been reviewed and approved by the California Department of Justice. This attempt by tribal casinos to shut down lawful competition by tax-paying California businesses will fail.”
One of the named defendants, Lake Elsinore Casino Cardroom, has operated in Lake Elsinore since the 1960s. They report that they employ over 260 individuals and contribute more than $7 million annually to local services.
Ted Kingston, the cardroom’s owner, stated:
“It is disappointing that the tribes have targeted the Lake Elsinore cardroom in this lawsuit. This is a direct attack on our community, our employees, and our long-standing operations, and we will vigorously defend Lake Elsinore Casino’s ability to continue to provide these popular, State-approved games.”
The California cardroom industry is a highly regulated sector that has existed for over 150 years. Cardrooms operate under state statutes and local ordinances, generating over $5.6 billion in economic activity, more than 20,000 jobs, and over $500 million in state and local taxes annually, which help fund essential public services.
SB 549, which went into effect on January 1, 2025, grants tribal casino operators special standing to sue state-licensed cardrooms over alleged violations of state law. The legislation specifically targets long-standing cardroom operations offering DOJ-approved versions of popular table games. Tribal supporters argue that the law protects their exclusive gaming rights, while cardrooms view it as an attempt to eliminate competition and establish a monopoly over gaming in California.
The lawsuit alleges that over 70 cardrooms are offering banked games unlawfully, and additional lawsuits may be filed under SB 549 before the April 1, 2025, deadline. Both sides are preparing for a lengthy legal battle that could reshape the gaming landscape in California.
