California Cardrooms Criticize Exclusive Tribal Agreements

California cardrooms have criticized tribal casino operators and accused the state of allowing "wealthy tribes to expand their exclusivity in gaming without sharing revenue." Cardrooms in California must pay federal and state corporate taxes, along with municipal levies in the cities where they operate. The California Gaming Association (CGA) stated that tribal operators are "a $12 billion business that pays virtually no taxes."

Kyle Kirkland, president of the CGA, stated that "with multiple new taxes for Californians, Sacramento cannot and should not allow tribes to expand their gaming exclusivity without sharing revenue." His comments followed a ruling from the San Francisco Superior Court that overturned California Attorney General Rob Bonta’s attempt to ban blackjack in non-tribal venues. A judge ruled that Bonta lacks the legal authority to issue such state prohibitions, and Bonta is appealing the verdict.

Impact of Tribal Agreements

California is home to over 65 tribes with gaming facilities. Although tribes do not pay taxes like cardrooms, they must contribute to a revenue-sharing fund for tribes without gambling businesses. Recently, Governor Gavin Newsom agreed to a 25-year pact with the Fort Mojave Tribe. The agreement will allow the tribe to operate two casinos with up to 1,200 slot machines and table games, but California will forgo claiming revenue from the tribe. Instead, the tribe will donate 0.5% of its net profits to an impact mitigation fund and cover regulatory costs.

The CGA has expressed its dissatisfaction: "California taxpayers deserve better than agreements that allow tribal casinos to generate billions without taxes at the expense of businesses and taxpayers who pay their share," Kirkland stated, labeling Newsom's agreement as a "scam."

Economics of Cardrooms and Tribal Casinos

It is challenging to verify the CGA's claim of $12 billion as most tribal operators in California are not required to disclose their financial data. In San Jose, two cardrooms, Casino M8trix and Bay 101, pay a total of $30 million annually in taxes, suggesting revenues of up to $200 million.

If California's tribal casinos paid the same taxes as San Jose-based cardrooms, the state could receive around $1.8 billion each year. The CGA also criticized the tribes for opposing prediction markets while seeking to legalize sports betting without taxes.

Record Year for Tribal Casinos

Nationally, tribal casino revenues have reached record levels. According to the National Indian Gaming Commission, gross gaming revenues rose by 5.3% year-on-year, reaching $2.3 billion in Fiscal Year 2025.

Not everything has been favorable for California tribes. The Department of the Interior recently ordered the Scotts Valley Band of Pomo Indians to stop operations at its temporary casino and abandon plans to build a $700 million permanent casino in Vallejo.

According to KRCR, some high-revenue tribal casinos outperform many major hotel and restaurant chains. The Corning Rolling Hills Casino and Resort, for example, generated "around $126 million annually," while Feather Falls Casino and Gold Country in Oroville reported revenues of approximately $75 million and $60 million, respectively.