Several California labor unions are opposing Senate Bill 549.
The bill, introduced by Senator Josh Newman in Feb. 2023, would grant gaming tribes the authority to sue California cardrooms. However, the unions believe this could threaten vital sources of tax revenue for many cities across the state.
As reported by local news sources, The California Gaming Association, Communities for California Cardrooms, and California Cardroom Alliance are urging state legislators to oppose the bill. The American Federation of State, County, and Municipal Employees (AFSCME), SEIU California, Teamsters Local 630, and California Professional Firefighters also oppose it.
Additionally, many cities across California have filed letters against the bill, including San Jose, Chula Vista, Oceanside, Commerce, and Hawaiian Gardens.
“Devastating impact”
In a joint letter, the labor unions wrote, "SB 549 Could Have a Devastating Impact on Public Sector Jobs,” describing it as “an attack on local cardrooms, which are a significant source of revenue for general funds in many cities across California.”
They warn that the potential loss of local tax revenue could cause financial distress for many cities, including larger urban areas like Fresno and San Jose. The unions pointed out that 78% of the general fund in Hawaiian Gardens comes from cardroom revenues and 50% in Commerce.
“Many have revenue sharing agreements with municipalities providing a significant amount of funding for essential public services like police, fire, parks and recreation, etc.," the letter reads. "The measure could easily force cardrooms out of business and result in a loss of $500 million in tax revenue statewide.”
The unions argue that if SB 549 gets the green light, cities relying on this income source might be pushed into municipal bankruptcy or even disincorporation, leading to potentially catastrophic consequences that jeopardize jobs, pensions, and the financial stability of working families.
The unions also highlighted the bill's potential effects on cardroom employees, stating that “the mere cost of litigation alone could lead to lower wages, loss of jobs, or cardroom closures.”
What is SB 549?
SB 549, also known as the Tribal Nations Access to Justice Act, would amend Section 19804 of the Business and Professions Code and add Chapter 2 to Title 16 of the Government Code.
The proposed legislation would allow gaming tribes to take legal action against licensed California cardrooms, allowing them to ask the court to determine whether these games violate state law, including tribal gaming rights.
If the games are found to be illegal under the California Constitution, the court could issue an injunction to stop them. Notably, the legislation would permit a one-sided injustice for the first time, as cardrooms would not be able to sue tribal casinos.
During an address earlier this year, James Siva, Chair of the California Nations Gaming Association, said that the future of gaming in California will be overseen by the state’s tribal governments, “not outsiders who think they know what is best for tribes.”
