California Tribes Moving Closer to Legal Action Against Cardrooms
The California Senate recently passed an amended version of SB 549 on August 31, which would allow the state’s tribes to sue cardrooms to determine if they are violating state law. The bill is now awaiting final approval from Governor Gavin Newsom. This legislation addresses concerns about third-party providers acting as banks in games like blackjack and roulette, which has been a point of contention for tribes who feel their rights are not being respected.
The General Assembly and Senate passed the proposal with overwhelming support. If signed into law, the tribes will have the opportunity to take legal action against cardrooms, marking a significant victory for California’s tribal nations. The Tribal Nations Access to Justice Act will give tribes access to justice that has been historically denied to them.
The bill does not allow for monetary damages, and any lawsuit must be filed by April 25. This development is a positive step for California tribes who have been fighting to protect their exclusive gaming rights guaranteed in the state’s Constitution.
New Compacts and Amendments for California Tribes
In another legislative move, the California General Assembly passed Senate Bill 931 on August 28. This bill, proposed by State Senator Bill Dodd, includes new compacts for several tribes, such as the Campo Band of Diegueno Mission Indians, the La Posta Band of Diegueno Mission Indians, the Timbisha Shoshone Tribe, and the Elem Indian Colony of Pomo Indians. Additionally, compacts for existing tribes like the Augustine Band of Cahuilla Indians, the Picayune Rancheria of Chukchansi Indians, and the Cher-Ae Heights Indian Community have been amended.
These compacts aim to enhance economic stability and self-sufficiency for California’s tribes while also providing revenue and job opportunities for thousands of individuals across the state. Senator Dodd has emphasized the benefits of these agreements for both tribes and the broader community, highlighting the positive impact on economic development.
Revenue Growth and Shrinking Margins for Tribal Gaming
Despite a record revenue of $41.9 billion in 2023 for Indian Country, tribes are facing shrinking profit margins. The 26th Annual Indian Gaming Cost of Doing Business Report revealed a 4 percent decline in margins from 2022 to 2023. This marks the second consecutive year of declining margins, indicating a concerning trend for tribal operators.
The report shows that profit margins have decreased from 36 percent in 2021 to 26 percent in 2023, reflecting ongoing challenges in the tribal gaming industry. Tribal operators will need to address these margin declines to ensure long-term sustainability and success in a competitive market.
DraftKings Fined for Slot Game Malfunction
Connecticut regulators recently fined DraftKings and game developer White Hat for a slot game malfunction that set odds to zero. DraftKings was fined $19,000 and required to refund nearly $24,000 to players, while White Hat received a $3,500 fine. The issue was related to the game Deal or No Deal Banker’s Bonanza, which resulted in no wins for players.
Despite identifying the problem shortly after the game’s launch, DraftKings failed to notify the Department of Consumer Protection in a timely manner. This incident highlights the importance of transparency and accountability in the gaming industry to protect players and maintain regulatory compliance.
Incident at Gun Lake Casino in Michigan
In a separate incident, a woman drove a white SUV through the front doors of Gun Lake Casino in Michigan during the night of September 2-3. The tribe reported that the incident appeared to be a domestic dispute, but fortunately, no injuries were reported. While the front entrance sustained significant damage, the casino remains open for business.
This incident serves as a reminder of the importance of security measures and protocols at gaming establishments to ensure the safety of patrons and staff. Casinos must remain vigilant and prepared to respond to unexpected events to maintain a secure environment for all visitors.
