California Unions Oppose SB 549 Over Concerns For Local Economies

According to a recent release, many labor unions across California are joining the California Cardroom Alliance, California Gaming Association, and Communities for California Cardrooms in opposing Senate Bill 549. The unions argue that the bill could threaten jobs and cause financial distress for cities that depend on cardrooms for tax revenue.

Also known as the Tribal Nations Access to Justice Act, SB 549 was introduced by Sen. Josh Newman in February 2023. It seeks to allow gaming tribes the authority to sue California cardrooms that they believe violate state law, including tribal gaming rights. The bill would prevent cardrooms from pursuing similar actions against tribal casinos.

Many city governments across California have voiced their opposition to SB 549, including San Jose, Tracy, Oceanside, Inglewood, Hawaiian Gardens, Commerce, Chula Vista, and more. Local unions opposing the bill include the Service Employees International Union (SEIU) California; California Professional Firefighters; the American Federation of State, County, and Municipal Employees (AFSCME); and Teamsters Local 630.

The argument against SB 549

“SB 549 is an attack on local cardrooms, which are a significant source of revenue for general funds in many cities across California,” the unions wrote in a joint letter. “Many have revenue sharing agreements with municipalities providing a significant amount of funding for essential public services like police, fire, parks and recreation, etc.”

They argued that the measure could result in a loss of $500 million in tax revenue across the state and cause problems for many cities.

“Approximately 78% of the City of Hawaiian Gardens’ general fund comes from cardroom revenues. Similarly, 50% of the City of Commerce’s general fund comes from cardroom revenues. Larger cities like San Jose and Fresno would also be seriously impacted. This bill will destabilize essential services.”

The letter said “SB 549 puts workers in the middle,” adding, “The mere cost of litigation alone could lead to lower wages, loss of jobs, or cardroom closures.” 

This opposition follows a recent protest that took place in Sacramento, with cardroom employees and local mayors rallying against SB 549. Holding banners like “We’re not fine with 549!” and “Bad Bet for California,” the protestors voiced their belief that the bill could harm cities and jobs.

The California Gaming Association estimated that the legislation could put around 32,000 jobs at risk if cardrooms are forced to shut down.