California cardrooms invested over $3 million in political campaigns targeting lawmakers who supported Senate Bill 549, which grants tribal casinos the right to legally challenge cardroom gaming operations. This unprecedented move came after the bill's passage into law in September 2024.

SB 549, effective January 1, allows tribes to seek judicial review of cardroom operations offering games like blackjack and pai gow poker. Tribes maintain that California voters granted them exclusive rights to these games, but their sovereign status previously prevented legal action against cardrooms.

The cardrooms' retaliatory spending affected three out of four targeted legislators:

• Senator Josh Newman (D-Fullerton), the bill's author, lost to Republican Steven Choi after $900,000 in opposition spending
• Assemblymember Evan Low (D-Cupertino) lost his congressional bid following $500,000 in negative advertising
• Assemblymember Brian Maienschein (D) failed to secure the San Diego city attorney position after $443,000 in opposition spending

Only Representative Laurie Davies survived the campaign, winning reelection despite $1.3 million spent against her.

The law's implications extend beyond gaming operations. California's 84 licensed cardrooms employ thousands, and many cities rely heavily on cardroom tax revenue for essential services. Industry representatives warn the law could jeopardize 32,000 jobs.

While tribes have historically dominated political spending in California gaming politics ($23.5 million in candidate donations over ten years compared to cardrooms' smaller contributions), this aggressive response signals a new phase in the ongoing conflict between tribal casinos and cardrooms.

Former Democratic Assemblymember Mike Gatto noted that such "vengeance spending" typically captures lawmakers' attention, though Senator Newman questioned the strategy's effectiveness after the bill's passage.

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