California gaming bill threatens thousands of cardroom jobs throughout the state | Opinion
There is currently legislation pending at Gov. Gavin Newsom’s desk that could have a serious impact on California workers that is both unnecessary and injurious. Senate Bill 549, authored by Sen. Josh Newman, D-Fullerton, while heavily backed by a few wealthy gaming tribes, poses an existential threat not only to jobs that keep our communities thriving, but also to the very financial stability of our cities.
The American Federation of State, County and Municipal Employees (AFSCME) California, stand alongside a broad coalition of public sector labor groups — including Service Employees International Union California, California Professional Firefighters and the Los Angeles Labor Federation — in opposition to SB 549.
Opinion
The bill will allow wealthy gaming tribes to sue their competitors, the licensed cardrooms throughout California. The tribes want to have access to courts to stop cardrooms from playing games that have been approved by the attorney general and state regulators for decades, such as blackjack, baccarat and pai gow (the state licenses these establishments and approves every single game played at cardrooms).
While SB 549 opens these establishments to lawsuits, cardrooms have no jurisdiction to sue the tribes — this means that tribes can have an unfair monopoly on gaming if they are successful in court.
Cardrooms employ thousands of individuals and generate significant revenues that fund essential public safety resources such as police, fire departments, parks, recreation, social services and other public sector jobs. In some cities where union members work, the reliance on their local cardroom gaming tax revenue is staggering.
This bill hurts communities. Without revenue generated by cardrooms, some cities could face municipal bankruptcy and disincorporation. The mere threat of litigation under this bill could lead to lower wages, furloughs and layoffs.
We have seen this story play out before: Some cities experienced layoffs while the cardrooms were shut down during the pandemic, leading to employee furloughs and cuts to essential services. Furthermore, cities that rely on cardroom revenue are primarily communities of color. Any impact to cardroom revenue will lead to a disproportionate impact on these communities in a time when we should be uplifting historically marginalized people.
SB 549 puts workers directly in the line of fire. Jobs, pensions and the financial well-being of working families across California would be placed in jeopardy. For about 32,000 Californians with jobs connected to the cardroom industry, signing SB 549 into law could mean the loss of a steady income, health benefits and the ability to support their families.
This bill is a bad bet for California. It threatens the financial security of our cities, the jobs of thousands of public sector workers and the essential services that millions of residents rely on every day.
Our state’s future depends on strong, resilient communities where local governments have the resources they need to serve the public effectively. Newsom should veto SB 549.
Alia Griffing is the legislative and political director for American Federation of State, County and Municipal Employees California.
