California Cardrooms Sue State Over Blackjack Ban
California cardrooms have filed lawsuits against the state over new gambling regulations that threaten to eliminate blackjack and other banked games starting April 1. The California Gaming Association, with support from the California Cardroom Alliance and Communities for California Cardrooms, filed the legal challenges in San Francisco Superior Court. According to the Attorney General’s own Standardized Regulatory Impact Assessment, the rules could eliminate at least 50 percent of cardroom jobs and revenue statewide. The regulations specifically target California card rooms offering games like blackjack at establishments including Fresno’s Club One Casino and Clovis’ 500 Club Casino. Cities that depend on cardroom income for public safety programs and municipal operations face significant budget shortfalls as a result of the proposed ban.
California Cardrooms File Lawsuits Against State Blackjack Ban
The California Gaming Association filed dual complaints challenging regulations issued by the California Department of Justice’s Bureau of Gambling Control. The association claims the department exceeded its authority by barring California card rooms from offering blackjack and player-dealer position games. The lawsuits, supported by the California Cardroom Alliance and Communities for California Cardrooms, assert the regulations contradict state law and represent an “unprecedented power grab” by Attorney General Rob Bonta.
Industry leaders argue the regulations reverse decades of precedent, noting that former attorneys general approved these games as lawful since at least the early 2000s. The complaints contend the rules “lack any legal or factual basis” and threaten the foundation of the cardroom industry by altering how third-party proposition player games are conducted. In that structure, an outside company acts as the banker rather than the house itself, which cardrooms maintain keeps operations legal under California law.
Kyle Kirkland, president of the California Gaming Association, stated the regulations threaten to eliminate more than half of California cardrooms jobs and wipe out a critical revenue source for dozens of cities. In regulatory filings, the Department of Justice estimates the rules will reduce cardroom revenue by $368.49 million annually while increasing tribal casino revenue by $184.25 million each year. More than 10,000 jobs statewide will be eliminated, representing about half of all cardroom jobs in California.
The state formally introduced the proposed regulations in spring 2025, held two public hearings in May, and reviewed more than 1,700 public comments. After careful consideration, the Department of Justice made no substantive changes to the proposed regulations. California cardrooms must submit compliance plans by May 31, 2026.
Why California Card Rooms Oppose the Gaming Restrictions
Industry representatives emphasize that California card rooms have operated table games legally for decades under a distinct framework that uses third-party proposition players. These independent contractors act as the banker instead of the house, which differentiates cardroom games from the house-banked operations run by tribal casinos. Cardrooms maintain this structure complies with state law and keeps games running while avoiding direct competition with tribal gaming exclusivity.
At a state meeting held by the Bureau of Gambling Control, city leaders, business owners, and residents shared concerns about economic fallout. The proposed changes could cause approximately 12,000 people to lose their jobs across California. Juan Garza, speaking for California Cities for Self-Reliance, stressed that taxes from gaming help pay for police, fire departments, and parks.
In Hawaiian Gardens, where a local cardroom provides over 60 percent of the city’s general fund, Mayor Dandy de Paula warned the ban could push the city toward financial troubles. She noted these games have run for many years without issue.
Chris Linger, a Capitol Casino worker, argued that a fair balance currently exists where tribal casinos operate slot machines and full-scale gaming while card rooms offer table games that sustain local economies.
Cities Brace for Major Revenue Losses From Casino Tax Changes
Municipal governments across California face severe fiscal consequences, given that many small cities structure their entire budgets around cardroom tax revenue. Hawaiian Gardens derives 78 percent of its general fund from cardroom operations, while Bell Gardens relies on cardrooms for 50 percent of its general fund. Commerce receives over £23.8 million annually from the Commerce Casino, representing more than 40 percent of the city’s general fund budget of approximately £63.5 million.
The Attorney General’s own economic impact study projects the state could lose over £397 million in annual tax revenue. Los Angeles County Supervisor Hilda Solis noted that LA County cardrooms generate over £1.59 billion in economic activity. The Los Angeles County Business Federation warned that Los Angeles County alone could lose more than 5,000 jobs.
Cities have begun implementing emergency measures to protect budgets. Commerce City Council voted unanimously to place a quarter-cent sales tax on the June 2026 ballot to offset the impact. Besides Commerce, San Jose reduced annual regulatory fees for Bay 101 and Casino M8trix, resulting in a loss of roughly £349,430 for the city. To offset costs, San Jose eliminated two positions from the Police Department.
Mayor Dandy De Paula of Hawaiian Gardens stated the proposal could “devastate and worst yet potentially bankrupt our city”. Officials in Bell Gardens, Compton, Commerce, and Gardena issued similar warnings about budget stability.
