Judge Dismisses California Gambling Lawsuit Against Cardrooms, Tribes Vow to Appeal

^{Players at the California Grand Casino, one of California’s historic cardrooms, which can continue operating following a judge’s dismissal of the tribes’ lawsuit. (Photo: courtesy of California Grand Casino)}

A Sacramento County Superior Court judge has dismissed a lawsuit brought by several California tribal nations against the state’s cardrooms, but the tribes say they still plan to appeal the decision.

Judge Lauri Damrell approved a previous tentative ruling on Oct. 10, dismissing a lawsuit brought by California tribes arguing that the state’s cardrooms are offering gambling that was meant to be the exclusive domain of tribal gaming. Judge Damrell had previously said she was open to reconsidering the ruling but chose to stick with her initial findings during Friday’s hearing.

Judge Says IGRA Provides Resolution for Tribal Gaming Disputes

Judge Damrell's ruling details that found that tribes and state governments were meant to resolve Native American gaming disputes via the Indian Gaming Regulatory Act (IGRA), which limits state courts' jurisdiction to enforcing state compacts. 

“The court is mindful that previous efforts to resolve this longstanding dispute – whether through regulatory action, legislation, ballot initiatives, or litigation – have been unavailing,” Damrell wrote in her ruling. “The court does not take lightly the importance of the issues at stake and, were it within its authority to provide a definitive resolution, it would endeavor to do so.”

Tribal Nations Gained Standing Under 2025 Law

As sovereign governments, California’s tribal nations have traditionally not had standing to sue the state’s cardrooms. That changed when Governor Gavin Newsom signed California Senate Bill 549 – the Tribal Nations Access to Justice Act – into law in September 2025,

The law gave tribes the ability to sue cardrooms beginning on Jan. 1, 2025, until April 1, 2025. Several tribes immediately took advantage of this fact, filing lawsuits on Jan. 2. 

In the lawsuit, the tribes alleged that cardrooms were violating California gaming law by offering games like blackjack, despite those table games being reserved for play against the house. The cardrooms have attempted to circumvent this restriction by offering "player-banked games", with licensed third-party propositions players (TPPs) usually taking on that role rather than typical gamblers.

Tribes Says Case Still Hasn’t Been Heard on Merits 

Tribal gaming leaders say that Judge Damrell’s ruling violates the intent of the legislation passed last year, which was specifically designed to give them this opportunity to sue in court.

“This outcome is especially troubling given that it was a state law enacted just last year that explicitly gave tribes standing in state count,” California Nations Indian Gaming Association Chairperson James Siva said in a statement. “It’s difficult to reconcile this ruling with the clear intent of the Legislature, and once again, a court has sidestepped the actual merits of the case – effectively denying tribes a fair opportunity to seek justice.”

Those same tribal interests confirmed they plan to appeal the ruling. But the cardrooms are celebrating their victory, saying they offer legitimate and valuable gaming services under state law.

“We are encouraged by today’s decision,” California Gaming Association President Kyle Kirkland said in a statement. “Our member cardrooms will continue to support good jobs, vital public services, and local economies across California while upholding the highest standards of integrity, accountability, and compliance.”