California Cardrooms Warn New Regulations May Devastate Local Economies
New Regulations Threaten California Cardroom Businesses
California’s recent regulatory changes concerning cardrooms are raising alarms among operators who warn that the impact extends far beyond financial losses. Many local workers face the risk of job losses as these changes take effect.
Upcoming Changes Target Cardroom Operations
The state’s gambling laws grant tribal casinos exclusive rights to traditional casino games. Nevertheless, cardrooms have creatively operated by using third-party player-dealers to offer blackjack and similar games without breaking the banked game prohibition. These adaptations allowed them to flourish within legal boundaries, but this status quo is now threatened.
Tribal gaming operators have long opposed cardrooms’ existence and have sought regulations to end such operations. Recently, significant regulatory reforms proposed by the Attorney General and the Bureau of Gambling Control were approved by the Office of Administrative Law, aiming to tighten restrictions on cardroom formats.
These new rules, effective April 1, impose stricter controls on player-dealer games. Additionally, cardrooms must submit detailed plans on game modifications complying with the new rules by May 31, 2026.
Cardrooms Warn Entire Communities Could Suffer Economic Consequences
The proposed changes have sparked fear throughout the cardroom industry, with some operators predicting widespread negative effects. Kyle Kirkland, owner of Club One Casino in Fresno, highlighted in an interview that these regulations threaten a major revenue source, potentially impacting up to 600 local families dependent on this industry.
Kirkland explained that player-dealer games contribute around 60% of Club One’s revenue. Blackjack alone accounts for a quarter of the casino’s income. The new restrictions could slash the casino’s tax contributions by as much as 75%, drastically affecting the local economy. This downturn may also lead to job cuts in cardrooms, adding further economic strain.
Currently, Club One contributes about $1 million annually to its county. Kirkland warns that the sudden loss of cardroom revenues could result in financial crises for some Southern California cities.
Attributing Regulatory Pressure to Tribal Lobbying Efforts
Kirkland attributes the harsh new regulations to sustained lobbying efforts by tribal casinos, who have repeatedly claimed that cardroom games harm the public. According to him, these accusations come solely from tribal interests.
Despite this, Kirkland intends to challenge the rules through legal channels. The regulations have sparked significant public response, with nearly two thousand comments submitted and extensive scrutiny by stakeholders.
Conversely, tribal operators have welcomed the regulatory crackdown as necessary to uphold their exclusive rights to casino gaming. They advocate for rigorous enforcement to protect tribal gaming operations from competition posed by cardrooms.
