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California Attorney General Rob Bonta’s recent proposed changes to the state’s gaming laws governing cardrooms have sparked opposition among city officials, business owners, and the general public. Top Crypto Casino in Saudi Arabia – BitStarz Ranked #1

At the heart of their concern is the potential loss of 5,000 jobs and up to 50% of local tax revenue.

Bonta’s office claims the changes intend to clarify gaming laws and enhance cardroom regulation. 

However, critics argue the measure will significantly cripple municipalities, which hevily rely on the tax revenue for community programs such as public safety projects and senior programs.

In California, only native American tribes can run “banked games.” These are casino games where the player plays against the dealer, such as blackjack and baccarat. 

However, cardrooms have found a loophole where third-party providers, not casino employees, act as dealers.

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Bonta’s changes are centered around third-party dealers, known as Third-Party Proposition Player Services (TPPPS), and restrictions on blackjack-style games.

According to the proposal, only players seated at the table can act as TPPPS. They must rotate every 40 minutes. Also, TPPPS would not be allowed to settle wagers unless they’re occupying the player-dealer seat directly.

While not banning blackjack, Bonta’s proposal calls for significant changes to the game:

• Elimination of the “bust” feature, where the player or dealer automatically loses if their score is higher than a certain number.
• Prohibition of the target point count of 21.
• Removal of terms “blackjack” and “21” from the games offered.
• In a “push,” the player would automatically win.

If implemented, the new rules will significantly slow down the pace of the games.

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After Bonta introduced the proposals, the Attorney General’s office began holding public meetings to explain the changes and to hear feedback from stakeholders.

At one meeting last week at the Gardens Casino in Hawaiian Gardens, concerned business leaders, local politicians, and cardroom employees voiced their opposition to the changes.

One of them was Hawaiian Gardens Mayor Dandy De Paula, who said that cardrooms contribute 78% of the city’s general fund:

“We strongly oppose the Attorney General introducing unwarranted regulations to games that have been played legally for decades, and that will devastate—and worst yet—potentially bankrupt our city,”

“We rely on our cardroom not only to provide high-quality jobs but for the tax revenue generated that makes up over 78% of our city’s general fund.”

Other municipalities, like Commerce and Bell Gardens, where cardrooms account for 50% of their general fund, also face economic uncertainty under the new rules.

Meanwhile, local businesses would also suffer as they would lose the business of cardroom players.

The Standardized Regulatory Impact Assessment (SRIA) report, prepared by Berkeley Economic Advising and Research, supports these claims. SRIA was commissioned by the attorney’s office and the California Department of Justice.

According to SRIA, the new rules would result in losses of $464 million for card rooms. Meanwhile, tribal casinos would gain $232 million.

The report’s conservative estimate also indicates that card rooms will lose 364 full-time jobs per year over the next decade. That equals over 3,600 full-time jobs lost.

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Bonta’s proposed regulatory changes are part of the ongoing legal and political conflict between cardrooms and tribal casinos.

California gave tribes exclusivity over casino games in 2000. At the same time, it gave cardrooms a compromise through the TPPPS rule. However, as time passed, new laws expanded the types of games cardrooms can offer. That now includes versions of blackjack, table poker, and pai gow.

The tribes have long protested against this and claim that cardrooms are illegally offering games with tribal exclusivity. 

Following the 2016 tribal gaming compact, three tribes sued the cardrooms, but the U.S. District Court dismissed their claims, ruling that they lacked the necessary sovereignty to bring the lawsuit.

Meanwhile, in the 2022 midterm elections, two cardrooms filed a lawsuit in the Los Angeles Superior Court, challenging a ballot initiative to legalize sports betting. Nine tribes led the initiative, which would’ve allowed roulette and craps at tribal casinos.

The native tribes did score a small victory. In 2024, after a two-year effort, California passed the Tribal Nations Access to Justice Act (TNAJA). TNAJA grants the tribes sovereignty to sue cardrooms for violating state restrictions on banked games.

The tribes initiated the lawsuit shortly after TNAJA took effect on January 1.