Cardrooms in California have agreed to provide surveillance footage of table games in an ongoing legal dispute with Native American tribes. The tribes claim the cardrooms are infringing on their exclusive rights to offer casino-style gaming in the state.
Surveillance Footage to Be Shared
According to court documents, California cardrooms will share surveillance footage of their table games, referred to as “Subject Games.” The footage covers a 24-hour period on 28 December 2024. If this material is incomplete, footage from 31 December will also be provided. Should further footage be required, both parties will discuss which additional dates are relevant.
The footage, limited to overhead views of the games, was approved for disclosure by Judge Lauri A. Darnell on 14 January. The case, filed by seven Native American tribes, began on 2 January in Sacramento Superior Court.
Dispute Over Exclusivity and TPPPS
At the heart of the legal battle is the tribes’ assertion that cardrooms violate their exclusive rights to operate “house-banked” games, as outlined in Proposition 1A. Cardrooms argue their games are “player-banked,” which makes them compliant with state laws.
Since 2007, cardrooms have utilised third-party proposition player services (TPPPS), independent entities providing bankers for games. This practice emerged to accommodate players lacking the financial capacity to act as bankers themselves. Currently, 23 licensed TPPPS providers operate in California.
While cardrooms claim TPPPS providers maintain financial independence, the tribes argue these relationships are poorly defined, undermining the supposed independence of the providers.
Case Background
The tribes have opposed TPPPS since their introduction nearly two decades ago but were unable to pursue legal action due to their status as sovereign nations. This changed on 30 September 2024, when Governor Gavin Newsom signed SB 549, granting tribes the right to sue the state’s 87 cardrooms. Legal action must be initiated by 1 April 2025, and the tribes promptly filed their lawsuit.
Cardrooms warn of significant economic consequences if their operations are shut down, particularly in small communities reliant on tax revenue for local infrastructure and services. The industry spent $3 million in an unsuccessful effort to unseat four lawmakers who supported SB 549.
Future Implications
The outcome of this case could reshape the relationship between California’s cardrooms and Native American tribes, as well as the future of casino gaming regulations in the state.
