{"id":7916,"date":"2022-05-23T12:27:20","date_gmt":"2022-05-23T19:27:20","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=7916"},"modified":"2022-05-23T12:27:20","modified_gmt":"2022-05-23T19:27:20","slug":"cardrooms-enter-california-sports-betting-ballot-battle","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/cardrooms-enter-california-sports-betting-ballot-battle\/","title":{"rendered":"Cardrooms enter California sports betting ballot battle"},"content":{"rendered":"

The fight over control of California sports betting is between tribes and sportsbook operators. But other interested parties, like California\u2019s cardrooms, are putting their thumb on the scale.<\/p>\n

Both initiativess’ chances of passing are on shaky ground, making the cardrooms\u2019 thumb a potential gamechanger, even if its impact is at the margins.<\/p>\n

Recommended reading for those unfamiliar with the two initiatives: Comparing and contrasting California\u2019s sports betting initiatives<\/a><\/em><\/p>\n

Cardrooms Present a Worst-Case Scenario<\/h2>\n

A coalition of Southern California cities has launched a campaign<\/a> claiming the tribal ballot initiative would decimate the commercial cardroom industry and threaten 32,000 jobs and $1.6 billion in annual wages.<\/p>\n

Per local reporting, \u201cThe anti-initiative coalition \u2014 including representatives from Commerce, Compton, Hawaiian Gardens, and Bell Gardens \u2014 held a press conference Thursday, May 19, outside the Commerce Senior Citizens Center to voice their concerns.\u201d<\/p>\n

The initiative\u2019s primary aim is to legalize retail sports betting at tribal casinos and the following racetracks: Santa Anita Park, Los Alamitos Race Course, Del Mar and Golden Gate Fields.<\/p>\n

It also authorizes tribal casinos to add craps and roulette games and opens the door to lawsuits against cardrooms.<\/p>\n

The opposition coalition noted the initiative extends a tribal monopoly on gaming. Still, the biggest concern is a provision in the tribal initiative that allows individuals or entities to initiate costly litigation against cardrooms.<\/p>\n

Of note, the cardrooms do not support the alternative initiative that would legalize online sports betting, which also excludes commercial cardrooms. The possibility of lawsuits is central to the cardroom opposition to the tribal initiative.<\/p>\n

The Potential Fallout<\/h2>\n

The coalition warns that if the initiative passes and the expected lawsuits become a reality, it could be a death knell for the commercial cardroom industry.<\/p>\n

Hawaiian Gardens City Councilman Jesse Alvarado said his city’s budget would suffer a massive hit if the Gardens Casino were to close its doors.<\/p>\n

\u201cThe Gardens Casino, which has operated in the city of Hawaiian Gardens for the past 22 years, is a critical partner to our entire community \u2013 providing more than 68% of our city\u2019s total general fund revenues,\u201d Alvarado said in a statement.<\/p>\n

Bell Gardens Councilwoman Alejandra Cortez also painted a bleak picture of life without the Bicycle Hotel & Casino. According to Cortez, “The Bike” is responsible for 46%, or $15 million, of the city\u2019s general-fund revenue.<\/p>\n

‘Only the Guilty Need Worry’<\/h2>\n

The tribes see it differently.<\/p>\n

\u201cOur measure simply ensures existing laws preventing illegal gambling are being followed,\u201d said Kathy Fairbanks, a spokeswoman for the Coalition for Safe, Responsible Gaming. \u201cCardrooms following the law have nothing to worry about \u2014 nor do their employees.<\/p>\n

\u201cThe only cardroom casinos at risk of legal enforcement are those that repeatedly violate California gaming laws.\u201d<\/p>\n

However, tribes have long sought to stop player-banked card games at commercial cardrooms and have raised numerous complaints about the use of third-party dealers to keep these rotational deal games (blackjack and pai gow poker) going.<\/p>\n

You can find a deeper explanation of this dispute here:<\/p>\n