Lake Elsinore Casino Cardroom Fighting Tribal Lawsuit

CALIFORNIA — Is offering games like blackjack and pai gow poker in California cardrooms legal?

Seven casino-owning Native American tribes, including the Pechanga Band of Mission Indians in the Temecula area and the Agua Caliente Band of Cahuilla Indians in the Coachella Valley, say no.

Under a new law that took effect Jan. 1, the tribes took action by filing suit in Sacramento County against about 80 California cardrooms.

"Defendants brazenly profit from illegal gambling," the tribes allege in the opening line of their lawsuit.

A cardroom industry representative offered a very different narrative.

"We are confident that California’s cardrooms are operating table games in full compliance with the law, just as they have done for decades," said California Gaming Association President Kyle Kirkland. "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."

The longstanding feud between cardrooms and tribal casinos is making new headlines due to Senate Bill 549, which took effect on New Year's Day.

Tribes say that, years ago, California voters gave them the exclusive rights to host the disputed table games. Revenues were historically used to benefit disenfranchised tribal communities.

But tribes are sovereign governments, so they have lacked legal standing to sue California’s privately owned cardrooms.

That has changed. With SB 549 now in effect, the tribes have a three-month window to sue cardrooms. Judges will decide whether the cardrooms can continue to offer the disputed games.

The lawsuit's outcome will affect some California cities, whose budgets include revenues from cardroom tax.

According to a CalMatters report, nearly two-thirds of the budget for Hawaiian Gardens and almost half for the city of Commerce, both in Los Angeles County, come from local cardrooms.

A reduction could jeopardize the cities' budgets for police, firefighters and other local services.

San Jose City Councilmember Sergio Jimenez told lawmakers in July that the city receives $30 million each year from cardrooms, enough to fund 150 police officers or 133 firefighters.

The Lake Elsinore Casino Cardroom has operated in Lake Elsinore since the 1960s. The business offers what it says are state-approved table games and employs over 260 people. According to the business, it contributes over $7 million annually to essential services in Lake Elsinore.

"It is disappointing that the tribes have targeted the Lake Elsinore cardroom in this lawsuit," said Lake Elsinore cardroom owner Ted Kingston. "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."

Senate Bill 549 was conceived by the Viejas Band of Kumeyaay Indians in San Diego County. The tribe was the bill’s original sponsor.

When SB 549 was signed in September by Gov. Gavin Newsom, Viejas Chairman John Christman said, "California’s past has been tragic for tribes, but this bill represents an important recognition of our rights and renewed commitment to the future of the state’s Native people."