California cardrooms invested over $3 million in political campaigns targeting lawmakers who supported Senate Bill 549, which grants tribal casinos the right to sue cardrooms over allegedly illegal gaming operations.

The law, effective January 1, enables tribes to legally challenge cardrooms' operation of games like blackjack and pai gow poker. Tribes claim exclusive rights to these games through voter approval, while cardrooms argue their modified versions are legal.

Three of four targeted legislators lost their reelection bids:

• Sen. Josh Newman (D-Fullerton), the bill's author, lost to Republican Steven Choi
• Assemblymember Evan Low (D-Cupertino) failed in his congressional bid
• Assemblymember Brian Maienschein (D) lost the San Diego city attorney race

Only Republican Laurie Davies survived the cardrooms' campaign, despite $1.3 million spent against her.

Key impacts of SB 549:

• Affects 84 licensed cardrooms in California
• Could threaten 32,000 industry jobs
• May impact city budgets heavily dependent on cardroom tax revenue
• Challenges cardrooms' use of third-party companies as dealers

While tribes have historically outspent cardrooms in state politics ($23.5 million vs. minimal contributions over the past decade), this aggressive response signals cardrooms' willingness to challenge political opposition, even after legislative defeats.

Former Democratic Assemblymember Mike Gatto noted that such "vengeance spending" typically captures lawmakers' attention, though bill author Newman questioned the strategy's effectiveness after the law's passage.

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