A coalition of California tribal casino operators has filed a lawsuit against the state's cardroom industry, alleging illegal gambling operations that violate both the state constitution and California Penal Code.

The January 1 filing in California Superior Court represents seven of the state's 63 tribal operators, including major groups like the Agua Caliente Band of Cahuilla and the Pechanga Band of Indians. This legal action was made possible by Governor Gavin Newsom's recent signing of the Tribal Nations Access to Justice Act, which allows tribes to seek declaratory relief in state courts.

At the center of the dispute are "California games," modified versions of casino classics like blackjack and pai gow poker. While these games theoretically allow players to rotate as dealers and take a rake from each hand to avoid classification as house-banked games, the tribes argue this is merely a facade.

The lawsuit contends that most cardrooms don't actually require dealer rotation, allowing a single player to bank continuously. Additionally, cardrooms employ third-party proposition players (TPPPs) to act as dealers when players decline the position, which tribes argue effectively creates an illegal banking system.

The tribes maintain exclusive rights to offer house-banked casino games under the California Constitution. Their attorney, Adam Lauridsen, emphasizes that tribal gaming has contributed significantly to the state budget and community services through gaming-compact payments.

The California Gaming Association warns that restricting these games could force many cardrooms to close, potentially eliminating thousands of jobs. While the tribes cannot seek monetary damages under the new law, they aim to establish a legal determination regarding the games' legitimacy.

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