California Governor Signs Law Allowing Tribes to Challenge Private Gambling Facilities
Date: 2024-09-30 Author: Leon Pierce Categories: EVENTS
California Governor Gavin Newsom signed Senate Bill 549, which gives Native American tribes the right to sue private gambling facilities. The initiative has already sparked a heated debate in the gambling industry in the state.
The tribes claim that private gambling facilities are breaking the law by offering bank games such as blackjack and poker. The passage of the law has caused a serious conflict between tribal casinos and gambling halls, which actively compete in the gambling market in California.
Now tribes can challenge the actions of about 80 gambling facilities owned by private companies. According to CalMatters, the legislation allows tribes to argue that the establishments are violating the exclusive gambling rights granted to them by voters. Previously, tribes could not sue gambling halls because of their status as sovereign nations, but the new law removes that legal hurdle.
The financial implications of the law could be severe, as many California cities rely on gambling tax revenue. Hawaiian Gardens, for example, gets two-thirds of its budget from gambling halls, and Commerce gets nearly half of its budget from gambling. Other cities, such as San Jose, could also face financial difficulties: They receive about $30 million annually from gambling, and city officials worry about cutting back on essential services like police and fire protection if the gambling business declines.
The bill has also sparked intense lobbying from both sides of the issue. Tribes have long argued that gambling operations take money away from communities that have faced historical hardship. They see the new law as a step toward closing that economic gap.
On the other hand, the gambling operations say they are legal and have the approval of the state Attorney General’s Office. However, they fear that the tribes’ right to sue without the ability to counterattack could result in prohibitive legal costs that could shut down their operations.
Lobbying and financial support have had a significant impact on policy decisions related to the bill. Last year, one gambling operation, the Hawaiian Gardens Casino, spent more than $9 million on lobbying. At the same time, tribes have been more vocal in their support for Governor Newsom, having donated more than $7 million since his gubernatorial campaign, compared to $252,000 from the gambling operations.
The bill’s passage coincides with a number of other initiatives aimed at supporting Native Americans. On Native American Day, the governor signed several laws that aim to integrate Native perspectives into curriculum and facilitate the use of traditional land management practices.
