California’s cardrooms are preparing for disruption after regulators finalized rules banning blackjack-style games, effective April 1. The California Department of Justice (DOJ) issued the regulations to enforce Penal Code §330, which bars “any game of twenty-one.” Cardrooms must submit compliance plans by May 31. Officials frame the ban as constitutional enforcement, but city leaders and industry groups warn it could cause severe economic consequences.
Municipal Budgets and Economic Impact
Statewide, over 70 cardrooms employ roughly 20,000 workers. Estimates suggest the ban could reduce annual tax revenue by more than $500 million. In Los Angeles County, the impact is acute. Supervisor Hilda Solis said cardrooms generate more than $2 billion in local economic activity and support over 9,000 jobs.
Hawaiian Gardens, a city of about 14,000 residents in less than one square mile, illustrates the risk. The Gardens Casino employs around 1,300 people and contributes $13 million annually in tax revenue. Councilmember Victor Farfan said nearly two-thirds of the city’s $20 million general fund comes from the cardroom, funding essential services such as policing. Farfan added, “A sudden and significant reduction in cardroom activity would place these services at serious risk,” and called the ban “not an abstract policy debate; it’s a matter of economic survival.”
The city has discussed Chapter 9 municipal bankruptcy should revenues decline sharply. Other communities face similar vulnerabilities: cardroom revenue makes up roughly half of Bell Gardens’ general fund and 40% of Commerce’s. Commenters warned closures or disincorporation could follow if revenue falls.
Industry and Tribal Reactions
Cardroom operators argue the rules threaten their operations. Kyle Kirkland, president of the California Gaming Association, wrote that “The proposed regulations destroy the financial viability of the California cardroom industry, jeopardize thousands of working families and harm dozens of California communities.” At The Gardens Casino, attorney Keith Sharp said eliminating blackjack could force layoffs of up to 300 workers.
Labor unions and nonprofits expressed concern over declines in social programs, scholarships, and youth initiatives. One group noted Seven Mile Casino contributes over $35,000 annually to law student scholarships.
Tribal leaders welcomed the ban, emphasizing legal clarity and fairness. James Siva, chair of the California Nations Indian Gaming Association, called the regulations an “important step in combating unscrupulous and illegal gaming in California.” Victor Rocha added, “Justice delayed can sometimes still be justice too.”Tribal casinos continue offering blackjack under Proposition 1A, which grants tribes exclusive rights to banked casino games.
State’s Position and Outlook
The DOJ acknowledged cardrooms “pay fair wages … and contribute to the local tax base like other businesses in their community,” but stated economic impact cannot override statutory prohibitions. Regulators concluded no alternative would achieve the same enforcement objectives.
Analysts estimate tribal casinos could gain around $232 million annually as players shift, though some may travel to Nevada or Arizona to continue playing blackjack. As April 1 approaches, city leaders, operators, and workers face an uncertain period that could reshape local economies and the state’s gambling market.
Source:
“Los Angeles Cardrooms Face Crisis Under Blackjack Ban”, news.worldcasinodirectory.com, February 21, 2026
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