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We’ve written about the ongoing court fight over California legal betting, in casinos that is. Seven California tribes dropped a legal bomb on dozens of California card rooms at the start of 2025. Their claim? That card rooms are running illegal gambling operations in plain sight.
This lawsuit isn’t just some petty legal spat between rival operators. It has the potential to reshape the legal betting landscape in California and affect everyday Californians — whether they’ve ever played a hand of blackjack or not. And now, one crucial piece of evidence could sway the outcome: overhead surveillance footage from the card rooms themselves. Keep reading and we’ll tell you why it could make or break this wide-reaching case.
The Smoking Gun Might Be in the Sky
As part of the early court proceedings, card rooms have agreed to provide surveillance footage of what’s now being referred to as the “Subject Games.” The footage is from December 28, 2024, and covers a full 24-hour window. If that day’s tape is incomplete, they’ll fall back on December 31. No footage? Then both parties will “meet and confer” about what else can be used.
Here’s the kicker: the footage is limited to overhead cameras showing the actual table games in question — no backrooms, no commentary, just the raw action. And that’s exactly what the tribes want.
Why? Because their case hinges on proving that these card rooms are running house-banked games, something that’s supposed to be exclusive to tribal casinos under Proposition 1A (this grants them the right to offer casino games, but not betting on sports). If those overhead angles show the games being banked in practice — not just on paper — then it could be lights out for California’s card rooms. Confused about what house-baked even means? Allow us to explain.
What Is TPPPS Anyway?
Card rooms claim that their games are not house-banked at all. They contend they use something called third-party providers of proposition player services, or TPPPS for short. These are licensed companies whose employees step in as the “bank” during table games, because — let’s be honest — most players don’t have the bankroll or the interest to act as the house. According to the card rooms, this makes everything completely legal because the TPPPS are financially independent and not on the card room’s payroll. Therefore, technically speaking, the house isn’t banking the games.
Of course, the tribes have long contended this relationship between card rooms and TPPPS. Per their lawsuit, the two are one and the same. That’s why those cameras matter. If the footage shows card rooms effectively running the show — even through a so-called third party — then the tribes have a strong case. If not, their lawsuit could fall flat on its face.
As mentioned, the tribes have been stewing over this for a long time —since 2007, to be exact. That’s when card rooms first started using TPPPS. But until now, they couldn’t do much about it. That changed on September 30, 2024, when Governor Gavin Newsom signed SB 549 into law giving tribes the right to file suit against card rooms they don’t operate.
Lawsuit Is Bigger Than Just Gambling
Yes, billions of dollars in betting revenue is at stake. However, that’s only scratching the surface. The fallout of this case will even affect California folks who have never stepped into these gaming facilities.
You see, cities like Hawaiian Gardens and Commerce depend on card room tax revenue to stay afloat. We’re not talking pennies here either — nearly two-thirds of Hawaiian Gardens’ entire city budget comes from its card room. Commerce isn’t far behind. In San Jose, card rooms bring in $30 million annually—enough to pay for 150 police officers or 133 firefighters.
If the court rules against the card rooms, that money disappears overnight. Public services could get cut or cities will have to raise taxes to make up for it. Neither is beneficial for Californians.
The Card Rooms Are Playing Defense
Card rooms aren’t backing down. They feel targeted, and they’re throwing punches of their own. After SB 549 passed, card room operators spent $3 million trying to unseat four lawmakers who supported it. Three of them lost. And in court, they’re standing by the legality of their model.
“We really don’t want to be the sort of, you know, the Rodney Dangerfield of industries. We want to be respected,” said Keith Sharp, a lawyer for Hawaiian Gardens Casino. “We (will) work hard to continue to gain respect and protect our employees, protect our cities, protect our businesses.”
Judge Lauri Darnell approved the request for the footage back in January. Now that it’s in the pipeline, the footage is likely already being reviewed and scrutinized behind closed doors. Everyone involved knows what’s at stake — control of California’s gaming industry, billions in tax revenue, and the future of small city economies.
What will the cameras show? We’ll just have to wait and see. Be sure to check with us over the coming months cause we’ll be following this story ever so closely.
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