California: $1.4 M Increase in Gambling Contributions Amid New Bill

The coastal state has witnessed a battle between established tribal gambling operators and newer, digital and immediate forms of instant gambling. The tribes have vehemently opposed any form of gambling coming to the state that does not respect their position.

California tribes at center of gambling bill

As we reported, FanDuel CEO Amy Howe stated: “If legalized betting is going to happen in California, it will happen with and through the 100+ tribes that exist in the state of California. “It is essential that we do this together and not against each other.”

According to Gambling News, the story of tribal dominance in California has taken another turn with a new piece of state legislation having the support of regulators.

California's twenty-year history of gaming has been dominated by the tribes that call the state home. They represent 70% of gaming tithes paid to legislators and legal entities that regulate gaming.

As we reported, there were concerns across the state that Tribes' ability to sue arcades would lead to financial hardship and possible layoffs.

California lawmakers vote on new bill

The state's tribes represent the largest contributions to the game, which are incredibly important to this infrastructure. However, tribes have no formal way to address or point out a violation of the state's Gaming Control Act in a court of law.

However, other entities have focused on attracting new businesses in the gaming world. In response, California tribes have supported Senate Bill 549 (SB 549), which allows injunctive relief for tribes.

California lawmakers readily supported the new bill, which showed strong support for resolving tribal concerns as part of the process established by the Department of Justice. It was approved with 15 of 22 votes in favor, six abstentions and one vote against.

The bill has its detractors, such as Sean McMorris, director of California Common Cause's transparency, ethics and accountability program. He suspected the Tribe's contributions could influence support for the new bill.

He said: “No politician will ever tell you that money affects how they vote, but the public are not stupid. “It’s pretty suspicious that most of them voted based on where they got the most money.”

California Association of Contract Cities Executive Director Marcel Rodarte said, “SB 549 is a bill that will negatively harm many of our cities with gambling halls in their communities. “Game halls are an integral part of our cities, as they generate employment.”

Regardless of McMorris and Rodarte's concerns, it seems likely that Tribes could take action against “California-licensed card clubs and proposed third-party providers of player services” to seek some form of restitution.