Major unions join opposition to Josh Newman’s Gaming Tribe Giveaway Bill SB 549

16 August 2024

SB 549 could have devastating effects on public sector jobs

Sacramento, California – The California Gaming Association, the California Cardroom Alliance and Communities for California Cardrooms are announcing growing opposition. Numerous unions are joining the opposition to Senator Josh Newman’s Senate Bill 549, saying it could have a “devastating impact on public sector jobs.”

Joining the resistance against SB 549 includesThe 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 of opposition, including: Association of California Contract Cities, California Cities for Self-Reliance Joint Powers Authority, California Cities Gaming Authority, City of Bell Gardens, City 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 that allows gaming tribes to sue their competitors – the card rooms. This would disempower the state regulators and the Attorney General who oversee the legality and permissibility of card rooms. It would also allow a one-sided injustice for the first time, as card rooms would not be allowed to sue tribal casinos. The joint letter from these unions opposing SB 549 states:

– “SB 549 could have devastating effects on public sector jobs: SB 549 is an attack on local card rooms, which are a significant source of general fund revenue in many California cities. Many have revenue-sharing agreements with municipalities that provide significant

Amount of funding for essential public services such as police, fire, parks and recreation, etc. The measure could easily put card rooms out of business and result in a loss of $500 million in tax revenue nationwide – meaning less revenue for public safety, public health, homeless services and infrastructure.

The loss of local tax revenue could have devastating consequences for many cities in California. For example, 78% of the City of Hawaiian Gardens’ general fund comes from card room revenue. Likewise, 50% of the City of Commerce’s general fund comes from card room revenue. Larger cities like San Jose and Fresno would also be seriously affected. This bill will destabilize essential services.

If the bill goes into effect, cities that depend on this source of revenue could be forced into bankruptcy or even dissolution. This could have potentially devastating effects, jeopardizing jobs, pensions and the financial well-being of working families. We’ve seen this before: with Orange County’s bankruptcy.”

– “SB 549 puts workers at the center: The cost of litigation alone could result in lower wages, job losses, or the closure of card rooms. And the closure of card rooms could have devastating consequences for some cities, which may have to declare bankruptcy or dissolve their legal entities.”

For more information on why SB 549 is bad for California, visit BadBetforCA.com.

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