Tribal Warriors Unite: A Legal Battle to Dismantle Tiny Gambling Havens

At Lucky Chances in Colma on a recent Tuesday afternoon, the parking area was full, the atmosphere was thick with Marlboro smoke, and players at the tables were joyfully (or sorrowfully) testing their fortune. 

This is a scenario that may soon become uncommon if a coalition of California’s most influential Native American tribes prevails in court.

A lawsuit submitted this month contests the capacity of the small gambling establishments scattered throughout the state to offer blackjack, baccarat, pai gow, and various games that constitute a significant part of their income. 

The tribes assert that the independent card rooms are circumventing state regulations by providing unlawful games. The lawsuit names over 80 defendants, which includes Lucky Chances and other local venues such as Oaks Card Club in Emeryville and Artichoke Joe’s Casino in San Bruno.  

Lucky Chances general manager Dustin Chase chose not to comment on the litigation. 

“Most individuals who come here don’t even want it to be known that they visit us,” Chase stated. “They simply desire to enjoy themselves peacefully away from public scrutiny.”

The lawsuit was initiated by SB 549, which came into force on January 1. This legislation permits tribes to pursue legal action against card rooms they allege are operating gambling venues in breach of state regulations. The tribes lodged the lawsuit in Sacramento Superior Court on the first day the courts reopened in 2025. 

The litigation centers around what the tribes argue are their exclusive rights to provide banked casino games wherein a single entity functions as the “house” by compensating all winners and collecting from all losers. 

Card rooms — grouped under the California Cardroom Alliance — raised millions in lobbying funds in a failed attempt to halt the bill, portraying the legal risk as a critical threat to their business model. As per the alliance, there are 88 licensed card rooms in the state, managing over 1,900 tables. 

The alliance insists that card rooms comply with the prohibition on banked games by allowing players the option to act as the dealer at each table.

“We are confident that California’s card rooms operate table games in full adherence to the law, just as they have for decades,” stated California Gaming Association President Kyle Kirkland. “This effort by tribal casinos to eliminate lawful competition from tax-paying California businesses will not succeed.”

Supporters of card rooms argue that closing these establishments would adversely impact tax revenues and public services in their respective cities. Artichoke Joe’s, for instance, contributed nearly $2 million in taxes to San Bruno in 2019, sufficient to completely fund the city’s library, streets, and public works budgets.

The card rooms provided financial backing for challenges against lawmakers who supported SB 549, ultimately defeating the bill’s author, state Sen. Josh Newman of Fullerton, in his reelection bid. 

The tribes’ lawsuit contends that card rooms have evolved from their initial role as poker venues into unlawfully offering banked games. The suit asserts that many card rooms hire third-party entities to act as bankers for the games and fail to continuously rotate the player-dealer, as mandated by law. 

If the tribes achieve success in their legal battle, card rooms will be restricted to a considerably smaller range of games or will be compelled to shut down.

At Artichoke Joe’s this week, it was business as usual for the moment. Numerous individuals gathered around gaming tables on red-and-gold carpeting, chatting while eagerly waiting to play under the soft melodies of 1980s soft-rock tunes.

One side of the historic card room features a restaurant that the establishment proudly highlights as San Mateo County’s only 24-hour destination for American and Chinese cuisines.

Inside the casino, general manager Mike Koniski acknowledged the lawsuit but declined to comment further. He then politely, yet firmly, requested that The Standard vacate the premises.