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California Tribes Challenge Cardrooms Over Alleged Illegal Gambling Practices

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2025 started a little chaotic for the local gambling industry as several native Californian tribes filed a lawsuit against a range of the state’s cardrooms. The tribes allege that the cardrooms have been breaking local gambling laws by offering “banked” games like blackjack and baccarat, which fall under the exclusive purview of the local tribes according to long-standing tribal compacts. 

Under California law, tribal casinos have exclusive rights to operate “banked” games, which are gambling games where players bet against the house. Cardrooms are permitted to host “player-banked” games, where players bet against each other but cannot offer banked games as the house. 

However, with the massive rise of online casinos, even in California where the tribal compacts ensure they are yet to find any legal favor with state laws, banked games are becoming more and more popular among local gamblers. Although locally registered online casinos aren’t allowed in California, local players are still able to gamble on a range of internationally licensed online casinos. 



Many of these sites provide a range of options for live classic card games and even demo practice modes for games like poker and baccarat, or newbies trying to learn a little blackjack strategy. Learning how to read a blackjack tactic chart is always practical before starting the real thing. These platforms offer many perks too, like instant payouts and more privacy for players since many of them cater to crypto as a payment method. 

Given all of these benefits and choices online, there have been growing calls among local gamblers for physical locations where they can play these same games in person. This is possibly one reason why local cardrooms may be trying to cater to this market by offering banked games despite not being legally allowed to.  



In California and many other states nationwide, cardrooms and other establishments that are only allowed to offer very limited gambling and casino services due to tribal compacts have long been bemoaning them. While there are many calls now for a more varied gaming system, it can be a very tricky issue to navigate, both legally and socially.  

The tribes argue that cardrooms are circumventing local regulations by using third-party proposition player services (TPPPs) to act as the bank, effectively offering house-banked games. In this sense, they argue that cardrooms are trying to use loopholes and find ways to nullify the fact that they aren’t allowed to host banked games.

The lawsuit, filed in Sacramento Superior Court, names over 80 cardrooms across the state that are alleged to be engaging in such practices in one way or another. The tribes assert that these establishments are violating state laws and infringing upon their exclusive gaming rights granted under California’s Constitution and tribal compacts. They claim that these actions undermine the integrity of the state’s gaming regulations and unfairly disadvantage tribal casinos, which comply with stricter oversight. 

The tribes are seeking a court injunction to halt these practices immediately and are also pursuing damages, though the specific amount has not been disclosed. Additionally, the lawsuit raises concerns about the potential loss of revenue to tribal communities that depend on casino profits for public services and economic development.

The suit will likely be opposed as representatives of the cardrooms deny any wrongdoing. They maintain that their operations comply with California’s gaming laws. They argue that the use of TPPPs is legal and has been a standard practice for years. In this sense, the cardrooms may seek to rely on a line of reasoning that appeals to convention rather than a strict legal interpretation of local regulations. 

The California Gaming Association stated that it is confident that the cardrooms are complying with the law. This will give them a major boost and possibly signals that local authorities may be pivoting, something the tribes have accused them of before. With growing pressure to expand local gambling to the online market and beyond, many believe that it’s only a matter of time before local laws are changed to open up the market beyond the tribal compacts and usher in some kind of new varied system. 

That being said, California is also renowned for its liberalism so not all lawmakers are expected to be easily swayed in this regard. Given the longstanding nature of the compacts and the deep respect for them that the state often tries to afford local tribes, this issue could grow into a very tricky one down the line.  

Cardrooms contribute significantly to local economies through tax revenues and employment. For instance, Artichoke Joe’s Casino in San Bruno paid the city nearly $2 million in taxes in 2019, supporting various public services. The potential closure or restriction of these establishments could have economic repercussions for the communities that host them.

This is another reason why the cardrooms are expected to fight hard to oppose the matter. Given the success that the iGaming industry has found in states like Pennsylvania and New Jersey where it rakes in billions in state taxes, the strict and limited gaming options found in California are said to also be holding the state back greatly from a lot more revenue. 

There’s been a lot more pressure and criticism heaped on local government in the wake of the wildfires that have caused so much pain and destruction for residents. This event, while tragic for so many affected families, has also highlighted just how badly local services and tax revenue have been managed in the last two decades. 

With the local insurance industry being roundly criticized too, given the state’s shortcomings in the way the fires have been dealt with, there’s every chance now that new options for more tax revenue will soon be on the table. iGaming could be a perfect option for the state but issues like the local tribal compacts for casino gaming and how to work around them will inevitably be in the spotlight too.    

This new legal battle between the tribes and the cardrooms highlights the ongoing tension between them over local gaming rights. The outcome of this lawsuit could reshape the state’s gaming landscape, affecting both the industry and local economies. Stakeholders on both sides await the court’s decision, which will have significant implications for California’s gambling sector.


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