Big Labor Unions Join in Opposing Josh Newman’s the Gaming Tribe Giveaway Bill SB 549

August 16, 2024

SB 549 Could Have a Devastating Impact on Public Sector Jobs

Sacramento, CA – The California Gaming Association, California Cardroom Alliance, and Communities for California Cardrooms announce growing opposition with many labor unions joining in opposition to Senate Bill 549 by Senator Josh Newman as it could have a “devastating impact on public sector jobs.”

Joining in opposition to SB 549 includes the American Federation of State, County and Municipal Employees (AFSCME), California Professional Firefighters, and SEIU California and Teamsters Local 630 as well as a growing number of locals such as: AFSCME District Council 36, AFSCME District Council 57, AFSCME Local 101, International Union of Painters and Allied Trades DC 36, Los Angeles County Firefighters Local 1014, and the Los Angeles County Professional Peace Officers Association.

They join a growing number of cities that have filed letters in opposition including: California Contract Cities Association, California Cities for Self-Reliance Joint Powers Authority, California Cities Gaming Authority, City of Bell Gardens, Town of Colma, City of Chula Vista, City of Citrus Heights, City of Commerce, City of Compton, City of Emeryville, City of Gardena, City of Hawaiian Gardens, City of Inglewood, City of Oceanside, City of San Jose, and City of Tracy.

SB 549 will create a PAGA-like law for gaming tribes to be able to sue their competitors – the cardrooms. This would usurp state regulators and the Attorney General which oversee the legality and permissibility of cardroom games. It would also permit for the first time ever a one-sided injustice as cardrooms would not be allowed to sue tribal casinos. The joint letter opposing SB 549 by these labor unions state:

–        “SB 549 Could Have a Devastating Impact on Public Sector Jobs: SB 549 is an attack on local cardrooms, which are a significant source of revenue for general funds in many cities across California…Many have revenue sharing agreements with municipalities providing a significant

amount of funding for essential public services like police, fire, parks and recreation, etc. The measure could easily force cardrooms out of business and result in a loss of $500 million in tax revenue statewide — meaning less revenue for public safety, public health, homelessness services, and infrastructure.

The loss of local tax revenue could spell devastation for many cities across California. For example, 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.

If signed into law, cities who depend on this revenue stream could be forced into municipal bankruptcy or even disincorporation. This could have potentially devastating impacts that puts jobs, pensions and the financial wellbeing of working families at risk. We have seen this happen before: the Orange County Bankruptcy.”

–        “SB 549 Puts Workers in the Middle: The mere cost of litigation alone could lead to lower wages, loss of jobs, or cardroom closures. And cardroom closures could devastate some cities who may have to file for municipal bankruptcy or disincorporate.”

For more information about why SB 549 is bad for California, go to BadBetforCA.com.