Judge Finds SB 549 is Preempted by Federal Law
SACRAMENTO — Today, after thorough consideration and argument, Sacramento Superior Court Judge Lauri Damrell adopted her tentative ruling to dismiss the Agua Caliente lawsuit against the cardrooms, finding that SB 549 is preempted by federal law (the Indian Gaming Regulatory Act) and the court lacks jurisdiction to hear the dispute.
“Cardrooms for many decades have proudly operated lawful games with full transparency and stringent oversight by the office of the Attorney General of the State of California and the California Gambling Control Commission. We are encouraged by today’s decision. 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.”
California Gaming Association President Kyle Kirkland
Background
In 2024, the California Legislature passed SB 549, special interest legislation intended to allow California tribal casinos to sue state-licensed cardrooms over whether games approved by the Department of Justice violate tribal gaming rights or state laws. The law purports to authorize tribal casinos to seek a court order addressing these approved games.
In 2025, ten Tribal Casinos filed lawsuits against nearly every cardroom in the state along with third-party providers of proposition player services. Defendants moved to dismiss, arguing that SB 549 is an invalid piece of legislation because it improperly bypassed the federally required tribal-state compacting process in creating a new statutory cause of action for the Tribes’ benefit. The court reviewed extensive briefing and held two separate hearings before reaching its final conclusion that the statute is preempted by the Indian Gaming Regulatory Act and the Agua Caliente lawsuit must be dismissed.