California Implements Major Cardroom Regulations, Triggering Industry Pushback
New Regulations Shake Up California’s Cardroom Landscape
California has enacted new regulations targeting cardrooms that could significantly alter how these establishments operate. Known for providing a popular form of entertainment, cardrooms have long contended with challenges stemming from tribal gaming interests.
The Tension Between Cardrooms and Tribal Casinos
Under current California law, tribal casinos hold exclusive rights to operate banked casino games, such as classic table games. This exclusivity prevents other businesses from running these types of games independently.
In response, cardrooms have adapted by offering games without directly banking bets, often involving third-party players who act as dealers. Moreover, they’ve created unique game variations such as California Blackjack and Blackjack 21.5 to comply with local regulations while still appealing to players.
Despite these adaptations, tribal gaming operators have persistently viewed cardrooms as competitors and have made ongoing efforts to limit or eliminate their presence.
New Rules Could Redefine Cardroom Gaming in California
Attorney General Rob Bonta, along with the Bureau of Gambling Control, proposed a set of regulations that received approval from the Office of Administrative Law. These changes impose stricter definitions and limitations on which games cardrooms can offer and tighten controls on the use of player-dealer models.
Cardrooms must now submit detailed plans on how they intend to adjust their games to meet the new requirements by May 31, 2026. These rules may mark a decisive moment in the longstanding dispute between cardroom operators and tribal casinos.
Industry Representatives Vow to Challenge the New Legislation
Leaders within the cardroom community have voiced strong opposition to the updated regulations. Kyle Kirkland, president of the California Gaming Association, criticized the regulatory process, highlighting a lack of public discussion and transparency.
Kirkland also indicated that cardrooms plan to seek legal action, accusing Attorney General Bonta of overlooking the socioeconomic importance of cardrooms to local communities.
Concerns about financial impacts are widespread among stakeholders. Heather Guerena, chief counsel for Stones Gambling Hall in Citrus Heights, warned that the venue could face a loss of up to 40% in revenue. Similarly, Joseph Melech, co-owner of Stars Casino, noted that the changes might threaten up to 20% of his establishment’s employees.
