Card Rooms Invest $3M in Campaign Opposing California Lawmakers

In late October, Senate Bill 549 (SB 549) was signed into law by Governor Gavin Newsom, a move that greenlights Tribal casinos in California to sue card rooms over games like pai gow poker and blackjack. The new legislation, which takes effect January 1, 2025, has been met with significant pushback from the card rooms, igniting a political firestorm. In response to this legislative decision, card rooms across the state embarked on a concerted effort to retaliate against lawmakers who helped push SB 549 into law. Reports indicate that more than $3 million was invested by card rooms in a series of campaigns targeting several politicians in opposition ahead of the November election.

Under California’s federal and state election rules, organizations not directly affiliated with a particular candidate can spend unlimited amounts either in opposition or support, providing an ample playing field for such actions. Leveraging this loophole, the card rooms targeted four lawmakers who had been instrumental in the advancement of SB 549, opting for a range of tactics including mailing campaigns, text messages, and advertisements.

Under California’s federal and state election rules, organizations not directly affiliated with a particular candidate can spend unlimited amounts either in opposition or support, providing an ample playing field for such actions. Leveraging this loophole, the card rooms targeted four lawmakers who had been instrumental in the advancement of SB 549, opting for a range of tactics including mailing campaigns, text messages, and advertisements. Beyond merely criticizing the incumbents, they also extended support to their opponents. This was an unexpected strategy, given that since January of the previous year, card rooms had only contributed $1.3 million to politicians across California, while state Tribes had donated a substantial $6.3 million within the same period. Over the last decade, Tribal operators have amassed contributions exceeding $20 million, dwarfing the donations from card rooms.