A coalition of California tribal casino operators has filed a lawsuit against cardrooms, alleging illegal gambling operations that violate state constitution and penal code.

The January 1 lawsuit, filed in California Superior Court, represents seven of the state's 63 tribal operators, including the Agua Caliente Band of Cahuilla, Pechanga Band of Indians, Kumeyaay Nation, and San Manuel Nation.

At issue are "California games," modified versions of casino table games like blackjack and pai gow poker. While these games supposedly avoid the ban on house-banked games by taking a rake and allowing rotating dealer positions, the tribes argue this rotation rarely occurs in practice.

The lawsuit specifically challenges the use of third-party proposition players (TPPPs) who act as permanent dealers when players decline the position. Tribes contend this arrangement, combined with the lack of actual bank rotation, effectively creates illegal house-banked games that violate tribal exclusivity rights.

This legal action follows Governor Gavin Newsom's signing of the Tribal Nations Access to Justice Act, which enables tribes to seek declaratory relief in state courts. While monetary damages cannot be claimed, tribes can now challenge the legality of cardroom operations.

Attorney Adam Lauridsen, representing the tribes, emphasizes that the California Constitution grants tribes exclusive rights to offer banked games in tribal casinos. The tribes have contributed significantly to the state budget through gaming-compact payments and community services.

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

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