Gambling-Related Legislation Chaptered in 2007

  • Cardroom Legislation

  • AB 241 (Price), Chapter 594, Statutes of 2007, expands the number of satellite wagering facilities for off-track betting on horse races and expands the types of entities that can operate these facilities. Specifically, the bill allows the California Horse Racing Board (CHRB) to approve up to 45 "minisatellite" wagering facilities (15 in each of the three racing zones). No site may be located within 20 miles of a racetrack, a satellite wagering facility, or a tribal casino that has a satellite wagering facility. If the proposed facility is within 20 miles of one of the specified satellite facilities, then the consent of each facility within a 20-mile radius must be given before the proposed facility may be approved by the CHRB. Wagers can be accepted in an area that is accessible only to those who are at least 21 years of age. The CHRB must approve the site and wagering equipment. Parimutuel clerks must be available to service the self-service tote machines and cash wagering vouchers on a regularly scheduled basis.

    Under existing law, only racetracks, certain tribal casinos, district agricultural associations and fairs are allowed to operate satellite wagering facilities at authorized locations. In some instances, district agricultural associations and fairs are allowed to operate the satellite wagering on a leased premise. Currently, there are approximately 32 satellite wagering facilities in California. Because the bill does not restrict minisatellite wagering facilities to be operated by these entities, other entities not associated with horse racing or tribal gaming may be authorized to operate mini-satellite wagering facilities throughout the State. These entities could include cardrooms or other businesses. The CHRB is required to promulgate emergency regulations to implement these new minisatellite wagering facilities by April 1, 2008. Effective date: January 1, 2008

    AB 356 (Mendoza), Chapter 493, Statutes of 2007, allows cardrooms to set up to 5 collection rates per card table that can be charged to patrons. Previously, cardrooms were limited by the Penal Code to a maximum of 3 collection rate levels per table that are assessed on patrons in a variety of ways that vary by cardroom and by game. In addition, the bill allows the Commission to delegate the approval of articles of incorporation and other business entity filings to staff. Effective date: January 1, 2008.

    SB 289 (Vincent), Chapter 294, Statutes of 2007, allows the California Gambling Control Commission to approve or renew a State gambling establishment (cardroom) license even if the applicants or licensees hold limited financial interest in an out-of-state gambling business that conducts lawful gambling that would otherwise be illegal in California. The bill authorizes licenses to be approved for individuals that own up to 1 percent interest in out-of-state gambling businesses. This bill contains an urgency clause. Effective date: November 5, 2007.

    SB 730 (Florez), Chapter 438, Statutes of 2007, restructures the California Gambling Control Commission's gambling establishment (cardroom) licensing process under the Gambling Control Act. Specifically, this bill (1) implements a new individual key employee license program, (2) requires gambling licenses to renewed for a period of 24 months from the date of approval, (3) allows the Commission to set license renewal application fees by regulation, with a cap of $1200 per two-year period, (4) allows gambling chips to be used at tables for food and beverage purchases, and (5) requires the Bureau of Gambling Control within the Department of Justice (Division) to establish a schedule of charges for background investigations that differentiate between an initial and renewal license application. Effective date: January 1, 2008.

  • Tribal Gaming Legislation

  • AB 1212 (Nunez), Chapter 227, Statutes of 2007, implements the Letter of Agreement between the State of California and the San Manuel Band. Major provisions of the Agreement include a requirement that the Tribe implement Minimum Internal Control Standards at least as stringent as those established by the National Indian Gaming Commission and that the Tribe and State agree that disputes that occur under the LOA will be resolved first by good-faith negotiations. Effective date: January 1, 2008. For a copy of the Letter of Agreement, please click here.

    AB 1738 (Coto), Chapter 42, Statutes of 2007), implements the Memoranda of Agreement separately entered into between the State of California and the Agua Caliente Band, the Morongo Band, the Pechanga Band, and the Sycuan Band. Major provisions of the Agreements are as follows:

    • Tribes agree to require or continue to require Tribal Gaming Facility employers to comply with state court and agency orders pertaining to child, family, and spousal support concerning employees;
    • Tribes provide to the California Gambling Control Commission documents in an acceptable electronic format related to their workers' compensation system if they have not entered into the State's system;
    • Tribes establish a comprehensive problem gambling program;
    • Tribes implement Minimum Internal Control Standards at least as stringent as those established by the National Indian Gaming Commission; and
    • The Tribe and State agree that disputes that occur under the LOA will be resolved first by good-faith negotiations.

    Effective date: January 1, 2008. For copies of the Memoranda of Agreement, please click on the Tribal name.

    SB 106 (Wiggins), Chapter 37, Statutes of 2007, ratifies the New Tribal-State Gaming Compact between the State of California and the Yurok Tribe. The Compact allows the Tribe to operate up to 99 gaming devices and requires revenue contributions to the State based upon Net Win. The Compact also contains strong protections for patrons, employees, local communities, and the environment. Effective date: January 1, 2008. For a copy of the Compact, please click here.

    SB 174 (Ducheny), Chapter 38, Statutes of 2007, ratifies the Amended Tribal-State Gaming Compact between the State of California and the Morongo Band. The Amended Compact allows the Tribe to operate up to 7,500 gaming devices. Under the terms of the amended Compact, the State will receive an annual payment of $36.7 million annually for the Tribe's existing gaming devices. The Tribe will also be required to make payments to the State based on Net Win. This Compact is estimated to provide up to $5.2 billion to the General Fund over the lifetime of the Compact and includes increased protections for patrons, employees, local communities, and the environment. Effective date: February 6, 2008. For a copy of the Amended Compact, please click here.

    SB 175 (Ducheny), Chapter 39, Statutes of 2007, ratifies the Amended Tribal-State Gaming Compact between the State of California and the Sycuan Band. The Amended Compact allows the Tribe to operate up to 5,000 gaming devices. Under the terms of the amended Sycuan Compact, the State will receive an annual payment of $20 million annually for the Tribe's existing gaming devices. The Tribe will also be required to make payments to the State based on Net Win. This Compact is estimated to provide up to $1.6 billion to the General Fund over the lifetime of the Compact and includes increased protections for patrons, employees, local communities, and the environment. Effective date: February 6, 2008. For a copy of the Amended Compact, please click here.

    SB 903 (Padilla), Chapter 40, Statutes of 2007, ratifies the Amended Tribal-State Gaming Compact between the State of California and the Pechanga Band. The Amended Compact allows the Tribe to operate up to 7,500 gaming devices. Under the terms of the amended Compact, the State will receive an annual payment of $42.5 million annually for the Tribe's existing gaming devices. The Tribe will also be required to make payments to the State based on Net Win. This Compact is estimated to provide more than $7 billion to the General Fund over the lifetime of the Compact and includes increased protections for patrons, employees, local communities, and the environment. Effective date: February 6, 2008. For a copy of the Amended Compact, please click here.

    SB 941 (Padilla). Chapter 226, Statutes of 2007, ratifies the Amended Tribal-State Gaming Compact between the State of California and the San Manuel Band. The Amended Compact allows the Tribe to operate up to 7,500 gaming devices. Under the terms of the amended Compact, the State will receive an annual payment of $45 million annually for the Tribe's existing gaming devices. The Tribe will also be required to make payments to the State based on Net Win. This Compact is estimated to provide up to $7.2 billion to the General Fund over the lifetime of the Compact and includes increased protections for patrons, employees, local communities, and the environment. Effective date: January 1, 2008. For a copy of the Amended Compact, please click here.

    SB 957 (Torlakson), Chapter 41, Statues of 2007, ratifies the Amended Tribal-State Gaming Compact between the State of California and the Agua Caliente Band. The Amended Compact allows the Tribe to operate up to 5,000 gaming devices. Under the terms of the amended Compact, the State will receive an annual payment of $23.4 million annually for the Tribe's existing gaming devices. The Tribe will also be required to make payments to the State based on Net Win. This Compact is estimated to provide up to $1.8 billion to the General Fund over the lifetime of the Compact and includes increased protections for patrons, employees, local communities, and the environment. Effective date: February 6, 2008. For a copy of the Amended Compact, please click here.