Card rooms to provide surveillance footage in CA suit with tribes

California’s Card Rooms Concede to Surveillance Footage in Ongoing Legal Dispute with Tribal Nations

In a pivotal move during the ongoing litigation with California’s gaming tribes, the state’s card rooms have agreed to submit overhead surveillance footage of specific table games, now identified in legal documents as the “Subject Games.” This decision is crucial as both parties prepare for a case that could redefine gaming regulations in the state.

Legal filings indicate that the footage will be captured on December 28, 2024, spanning the full operational hours from 12:00 AM to 11:59 PM. Should the footage from this date be incomplete, additional recordings will be sourced from December 31. Furthermore, if both primary dates prove unfeasible, the involved parties will reconvene promptly to discuss alternative preservation methods for necessary footage.

Judge Lauri A. Darnell sanctioned this order on January 14, further illustrating the gravity of the dispute. The lawsuit, initiated by a coalition of seven tribes on January 2, is currently proceeding in Sacramento Superior Court.

The Implications of Third-Party Provider Services (TPPPS)

The provision of overhead surveillance footage is expected to play a central role in substantiating the tribes’ claim that card rooms are infringing upon their exclusive rights to operate house-banked card games under California’s Proposition 1A. This legislation explicitly grants tribes the authority to conduct house-banked games, wherein players bet against the casino itself. In contrast, card rooms maintain that their offerings are player-banked and thus comply with state regulations.

Since 2007, card rooms have increasingly utilized Third-Party Provider Services (TPPPS) — independent entities licensed by the state that function as the bank in card games. Most casual players lack the capital or inclination to act as the bank, and TPPPS bridge that gap. Presently, there are 23 licensed TPPPS providers operating throughout California.

Card rooms argue that the employment of TPPPS is legitimate due to their financial independence from the card rooms themselves. This separation, they contend, distinguishes their operations from illegal house-banked gaming. However, as reported by Capitol Weekly in 2023, the connections between card rooms and TPPPS providers reveal complexities that challenge this assertion. The interdependencies raise questions about the true nature of banking in these card games.

A Prolonged Legal Struggle

The tribes have been contesting the legality of TPPPS for nearly two decades but previously had limited legal recourse due to their sovereign status. This paradigm shifted dramatically on September 30 when Governor Gavin Newsom enacted SB 549, creating a pathway for the state’s 87 card rooms to face litigation. The deadline for tribes to file their claims was April 1, and they promptly acted on the opportunity.

Following the establishment of SB 549, card rooms have voiced concerns regarding the potential economic fallout from their possible closure, particularly in smaller communities reliant on the revenue generated for public services and infrastructure. In a retaliatory response to the legislation, card rooms invested $3 million in efforts to unseat four lawmakers who supported SB 549 during the November elections, resulting in the loss of three of those positions.

“We really don’t want to be the Rodney Dangerfield of industries. We want to be respected,” stated Keith Sharp, a legal representative for Hawaiian Gardens Casino, in remarks to CalMatters. “We will work diligently to earn that respect and safeguard our employees, our communities, and our businesses.”