Golden State gambling in a regulatory quandary
California’s apparent inability to police its $1.8 billion card-room industry is angering.
American Indian tribes and jeopardizing future expansion and regulation of what is arguably the country’s largest and most diverse statewide gambling industry.
Tribes are threatening litigation against state regulators and card rooms over the legality of banked games being played in California’s 87 card rooms.
The card rooms have over the past decade been the target of more federal fraud, loan-sharking and money laundering investigations than any segment of the nation’s legal gambling industry.
A six-year-old dispute between tribes, card rooms and state regulators boiled over at a February.
Meeting of the California Nations Indian Gaming Association (CNIGA), a group of 34 casino and non-casino tribes.
“It’s time to quit messing around with these guys,” Bo Mazzetti, chairman of the Rincon Band of Luiseño Indians, said of the California Gambling Control Commission (CGCC) and its enforcement agency, the Bureau of Gambling Control (BGC).
“Tribes need to get together, file a lawsuit and be done with it,” Mazzetti told a cheering crowd of 400 attendees.
Gathered at Harrah’s Resort Southern California near Temecula.
Potentially landmark litigation could have a major impact on the future of what is arguably the nation’s largest and most diversified gambling empire with casinos, card rooms,
parimutuel racing and a lottery generating more than $11 billion a year and employing nearly 100,000 workers.
Card-Room Conundrum California over the past decade has been struggling with gambling expansion,
Including online poker, sports betting, daily fantasy sports (DFS) and wagering on the internet.
Tribes at the CNIGA conference called for a clear policy on all forms of gambling expansion.
Meanwhile, legislators question the lack of resources needed to regulate card rooms and provide oversight of tribal government gambling.
Golden State gambling in a regulatory quandary Critics contend the state’s politically bifurcated regulatory system—a BGC under Attorney General Xavier Becerra and a GCC under.
Governor Jerry Brown—failed to adequately police the card-room industry as it evolved from strict.
Poker to highstakes versions of blackjack, pai gow poker and other games more commonly offered at Nevada casinos.
Perhaps more disturbing, Indian tribes and others accuse regulators of acting on behalf of the industry in crafting.
Regulations aimed at facilitating the card-room evolution to banked card games in an effort to compete with the state’s $8.4 billion tribal casino industry.
Tribal attorneys contend CGCC regulations governing third-party proposition player (TPPP) banking firms and BGC.
Game rules on rotation of the deal—directives enabling the facilities to offer what are known as.
“California/Asian” games—conflict with state laws and business codes.
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