Tribes Challenge Ruling That Blocks Lawsuit Against California Cardrooms

California’s long-running battle over who is legally allowed to run certain casino-style games reignited at the end of last week, when tribal casinos decided to fight off a recent court ruling that threatens to shut down their lawsuit against non-tribal cardrooms. Sacramento County Superior Court Judge Lauri Damrell gave a tentative ruling to dismiss the case, saying the federal Indian Gaming Regulatory Act (IGRA), which regulates gambling on tribal lands, takes precedence. The tribes consider it to be an act of misinterpretation. Their complaint targets cardrooms operating blackjack, baccarat, and other “banked” games off tribal land, which they claim are their exclusive right under California law.

Tribal attorney Adam Lauridsen argued that IGRA does not apply to non-tribal gambling properties, but to tribal casinos. By invoking IGRA to shut down their case, he said, the court would be breaking new legal ground and ignoring the state’s own authority to regulate gambling away from reservations. The tribes brought their claim under Gov. Gavin Newsom’s Senate Bill 549, known as the Tribal Nations Access to Justice Act. The law allows tribes to sue cardrooms in state court to determine whether a banked game violates California law. Banked games are

Tribal attorney Adam Lauridsen argued that IGRA does not apply to non-tribal gambling properties, but to tribal casinos. By invoking IGRA to shut down their case, he said, the court would be breaking new legal ground and ignoring the state’s own authority to regulate gambling away from reservations. The tribes brought their claim under Gov. Gavin Newsom’s Senate Bill 549, known as the Tribal Nations Access to Justice Act. The law allows tribes to sue cardrooms in state court to determine whether a banked game violates California law. Banked games are those in which the house acts as the bank. Cardrooms sidestep that by using third-party proposition players as the banker, a practice tribes say is illegal.

Lauridsen pointed out that the Legislature clearly granted tribes this right through SB 549, and that it should not, therefore, be overridden by federal law. “We don’t think any of this should be preempted because it’s non-tribal gaming off Indian land,” he said. On the opposing side, attorney Ben Horwich, representing the cardrooms, asserted that the tribes are trying to circumvent the framework Congress designed through IGRA, which stipulates that disputes be resolved through tribal-state comp