The California Gaming Association, which represents the state's commercial cardrooms, has accused authorities of granting tribal operators deals that generate an estimated $12bn in revenue without tax obligations. Commercial cardrooms pay federal, state and municipal taxes, while tribal casinos are exempt.
The criticism follows a 25-year compact signed by Governor Gavin Newsom with the Fort Mojave Indian Tribe. The agreement allows the tribe to build two casinos with 1,200 slots and table games, but California waived its share of revenue. The tribe will contribute just 0.5% of net profit to a compensation fund and cover the state's regulatory costs. CGA president Kyle Kirkland called the deal 'a scam' and said tribal operators are 'expanding their slot monopoly without sharing revenue with state residents.'
According to the association, two San Jose cardrooms — Casino M8trix and Bay 101 — pay $30m in annual taxes on roughly $200m in revenue. Extrapolating that rate across California's tribal casinos would yield up to $1.8bn a year for the state. CGA noted that voters approved tribal gambling on reservation land in 2000, but current compacts exceed that mandate.
Nationally, tribal casinos posted record results: the National Indian Gaming Commission reported GGR rose 5.3% to $2.3bn for the 2025 fiscal year. Individual California tribal operators are estimated to earn between $60m and $126m annually.
