California tribal casino operators have filed a lawsuit against cardrooms, alleging they operate illegal house-banked games that violate state constitution and penal code. The lawsuit, filed January 1 in California Superior Court, represents seven of the state's 63 tribal operators.

The legal action follows the signing of the Tribal Nations Access to Justice Act by Governor Gavin Newsom, which enables tribes to seek declaratory relief through courts, though monetary damages cannot be claimed.

The dispute centers on "California games," which are variations of casino table games like blackjack and pai gow poker. While these games supposedly avoid the house-banked game prohibition by taking a rake and offering rotating dealer positions, the tribes argue this system is merely a facade.

Key points of contention:

• Game rules don't require actual dealer rotation
• Third-party proposition players (TPPPs) act as de facto banks
• Single players can bank games indefinitely
• The practice violates tribal exclusivity rights

Adam Lauridsen, representing the tribes, emphasizes that the California Constitution grants tribes exclusive rights to offer banked games. He notes that tribal casinos have contributed significantly to the state budget and provided community services.

The California Gaming Association warns that restricting these games could force many cardrooms to close, potentially eliminating thousands of jobs.

This lawsuit marks a significant escalation in the long-standing dispute between tribal casinos and cardrooms over gaming rights in California, with potential far-reaching implications for the state's gambling industry.

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