Major California gaming associations have filed lawsuits against the state over new rules that could drastically change cardroom operations and threaten thousands of jobs. The California Gaming Association (CGA), California Cardroom Alliance (CCA), and Communities for California Cardrooms (CCC) submitted two cases in San Francisco Superior Court targeting regulations issued by the California Department of Justice’s Bureau of Gambling Control. The lawsuits seek to halt the rules and declare them unlawful.
The regulations, scheduled to begin April 1, 2026, would eliminate blackjack-style games and restrict player-dealer games long legally offered. The Attorney General’s Standardized Regulatory Impact Assessment (SRIA) projects the changes could cut cardroom revenue and employment by at least 50%, potentially forcing closures. Game changes could take effect as early as June.
“The rules reverse decades of settled law and practice under which these games were approved as lawful by multiple Attorneys General, including former Governor Jerry Brown and former Vice President Kamala Harris,” the associations stated. They called the regulations “an unprecedented power grab by the Attorney General that contradict state law in multiple ways.”
Threats to Jobs and City Funds
Kyle Kirkland, CGA President, stressed the stakes for workers and local governments. “Attorney General Bonta’s regulations threaten to eliminate more than half of California’s cardroom jobs and wipe out a critical source of revenue for dozens of cities. These games have operated legally for decades under multiple Attorneys General, yet one public official is now moving to shut them down without identifying a single public safety concern or addressing the 1,764 public comments about these regulations.
Our industry repeatedly raised legal and economic concerns throughout the rulemaking process, but the Attorney General refused to engage with the communities and working families who will be harmed. We are asking the court to stop these unlawful regulations before they wipe out thousands of jobs and put many local economies into fiscal distress across California.”
Cities such as San Jose rely heavily on cardroom revenues for police, fire, and 9-1-1 services. Officials warned that $32 million in city funds could be at risk. The City of Commerce has proposed a ¼-cent sales tax on the June 2026 ballot to address potential shortfalls, with other municipalities considering similar measures.
Political and Tribal Dynamics
While cities, workers, and unions oppose the rules, some tribal groups, including the California Nations Indian Gaming Association, support them, saying the regulations protect tribal gaming exclusivity. The rules also limit how third-party proposition player services (TPPPS) operate, particularly regarding player-dealer rotation.
Although the DOJ reported reviewing public comments and holding stakeholder meetings, cardroom groups say their concerns were ignored. The Attorney General’s office has not yet formally responded to the lawsuits but indicated it will review and respond in court once filings are received.
The legal challenge underscores ongoing tensions between California’s cardrooms, tribal gaming rights, and municipal funding, with the court’s ruling set to influence employment, city budgets, and the broader gaming industry.
Source:
“California Cardrooms File Lawsuits Over Regulations Approved by Attorney General Bonta Threatening Thousands of Jobs, Businesses, and City Services”, resources.sbcamericas.com, March 9, 2026
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