California Cardrooms Gain Temporary Reprieve on Blackjack Rules

(AsiaGameHub) –   California’s cardrooms can continue offering blackjack-style table games as their legal battle with state gambling regulators proceeds. A San Francisco Superior Court judge paused the new regulations after cardroom operators warned of significant losses for local venues, workers, and city budgets.

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Good to Know

• Judge Richard Darwin issued a preliminary injunction blocking the rules.
• The California Gaming Association argues the Bureau of Gambling Control exceeded its legal authority.
• This case focuses on blackjack, baccarat, and pai gow poker at state-licensed cardrooms.

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California Cardrooms Gain Temporary Reprieve in Table Game Legal Fight

California cardrooms avoided an immediate blow to one of their most critical revenue streams after Judge Richard Darwin blocked enforcement of regulations backed by Attorney General Rob Bonta and the Bureau of Gambling Control.

The rules would have ended the operational model cardrooms use to offer blackjack, baccarat, and pai gow poker. Tribal casinos in California can run banked games, where players compete against the house. Cardrooms cannot use this format, so they rely on player-versus-player games supported by third-party proposition player services.

This setup has been at the center of California gambling disputes for years. Tribal casino groups contend that cardrooms use third-party proposition players as a workaround. Cardrooms maintain that the games follow state law and have operated legally for decades.

The California Gaming Association, which filed the legal challenge, stated the court found “clear and convincing evidence” that enforcement would cause irreparable harm to cardrooms and the communities that depend on them.

Kyle Kirkland, owner of Club One Casino in Fresno and president of the association, said the ruling backed the cardrooms’ argument that regulators tried to alter state gaming law via new rules rather than legislation.

“Cardrooms have lawfully operated the games targeted by these regulations for decades. Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians,” Kirkland said.

The financial risk was a major focus of the case. Per the economic analysis from Bonta’s office, the regulations could cut more than 50% of cardroom revenue statewide. Cities use cardroom tax revenue to fund police, fire services, parks, youth programs, and other local community needs.

Kirkland noted that Club One Casino alone generates $1 million in annual tax revenue for Fresno. The California Gaming Association also shared that officials received more than 1,700 public comments opposing the rules before adopting them without meaningful adjustments.

Tribal casino groups view the issue differently. A coalition of Native American tribes has argued that privately owned cardrooms draw hundreds of millions of dollars away from tribal communities by offering games similar to house-banked casino games.