California's cardroom industry could soon see blackjack-style games effectively outlawed after new state regulations were passed this month.
Key Takeaways
- California’s Office of Administrative Law recently passed two DOJ regulations that would implement new rules for cardrooms.
- The California Gaming Association say the new regulations could seriously impact jobs and the community.
- The new regulations come just months after California Governor Newsom signed a sweepstakes ban into law.
While California law forbids businesses from operating banked games, cardrooms have been operating using player-dealers, which are employed by third parties to operate games such as “California Blackjack,” which plays very similarly to the traditional game.
Tribal casinos have been arguing to outlaw these games for some time, and the newly introduced rules will place stricter limits on player-dealer games and reduce the number of allowed games.
California Attorney General Rob Bonta announced the passage of two sets of regulations for cardrooms in December 2025, which were approved Feb. 9 and are set to take effect April 1.
The California Gaming Association (CGA) has since issued a statement condemning the new regulations, stating their implementation would result in the loss of around 50% of cardroom jobs, putting tens of thousands of families at risk.
Additionally, the CGA said the rules could lead to budget cuts for cities across California, as they rely on cardroom taxes to fund police, firefighters, and other services.
“Attorney General Bonta and the Bureau have unilaterally implemented extreme regulatory changes that will harm thousands of working families and the dozens of California communities that depend on cardroom taxes,” said CGA president Kyle Kirkland. “By the Bureau’s own simplistic economic assessment, these unnecessary regulations will eliminate over half of all cardroom jobs and force many communities to cut police, fire, parks, senior and food programs when the long-standing tax base disappears.”
Kirkland added that officials were warned by a number of cities, elected officials, employees, and other stakeholders that the decision to pass the new rules could cause local fiscal harm and a undermine due process and regulatory transparency.
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Governor Newsom signs sweepstakes ban into law
While cardrooms face the outlawing of a number of game types, another form of gambling has also faced a state ban.
Governor Newsom signed AB 831 into law in October, banning sweepstakes gambling in California, and it went into effect Jan. 1. The bill was amended in June last year and passed the Senate by a unanimous 36-0 vote Sept. 8. It then passed the State Assembly with a 63-0 vote Sept. 12.
Those found to be facilitating sweepstakes casinos, including “financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate” could be found guilty of a misdemeanor, punishable by a fine of up to $25,000, a year in county jail, or both.
The bill followed those in other states, including Montana, Connecticut, and New Jersey. New York has also since enacted a sweepstakes ban.
