Justice Department Targets Blackjack Loophole in California Card Rooms
Overview of the New Regulatory Move
The California Department of Justice has proposed new regulations that would prevent card rooms from offering blackjack and similar table games. This initiative aims to close a loophole related to “banked” games, which has been exploited by some establishments. The plan has met significant resistance from local business owners and employees who fear it could devastate their livelihoods.
Impact on Card Rooms and Modified Banked Games
Under current rules, card rooms in California are not allowed to provide banked games where players directly compete against the house. However, many card rooms have been operating altered versions of these games by appointing a “player-banker” from external companies. The state Justice Department now regards these variations as disguised forms of blackjack, violating the spirit of gambling regulations.
If the proposal is approved, it will shut down these modified games in numerous licensed card rooms, including popular venues such as Club One Casino and The 500 Club Casino near Fresno. Notably, tribal casinos, which operate under separate regulations, would remain unaffected and could continue offering traditional blackjack and other banked games.
Kyle Kirkland, head of the California Gaming Association and owner of Club One Casino, voiced concerns that tribal casino operators may have influenced this proposal due to viewing card rooms as competitors. He highlighted that table games contribute about half of his casino’s revenue, warning that such losses could be disastrous for local businesses and their employees.
Concerns Over Economic and Community Consequences
Supporters of the gambling industry emphasize the potential financial harm to local governments. Cities like Fresno and Clovis heavily depend on taxes from card rooms to fund essential services including police, fire departments, senior programs, and community initiatives. A comprehensive study conducted by Berkeley Economic Advising and Research projected that new regulations could cause card rooms to lose approximately $464 million annually, while tribal casinos might see an increase of $232 million. The study also estimated that over 360 full-time jobs could be lost over the next decade.
Demonstrations were held outside Attorney General Rob Bonta’s office in Fresno, where casino workers and supporters voiced fears about significant job losses and economic instability if the new rules are implemented.
Proponents argue that the changes would remove long-standing legal ambiguities and restore clarity to California‘s gambling laws. Conversely, opponents claim that card rooms play a crucial role in supporting local economies, and removing table games risks undermining community stability.
