The California Department of Justice (DOJ) is taking strides to implement regulations aimed at banning card rooms from hosting modified versions of blackjack and other banked card games, with the purpose of addressing a longstanding loophole that enables “player-banker” systems.
The suggested regulations have the potential to resolve decades of tension between tribal casinos and card rooms regarding the interpretation and enforcement of state gaming laws.
Currently, California card rooms are prohibited from providing games where players compete against the house. However, a “player-banker” system facilitated by Third-Party Providers of Proposition Player Services (TPPPPS) has enabled these establishments to conduct modified variations of blackjack and baccarat.
The DOJ maintains that these altered versions are essentially identical to traditional house-banked games, asserting that the setup remains a direct competition between player and dealer.
An economic analysis commissioned by the state forecasts significant financial impacts if the regulations are implemented. The Standardized Regulatory Impact Assessment (SRIA) prepared by Berkeley Economic Advising and Research predicts potential losses of up to $464 million for card rooms statewide, while tribal casinos could benefit with projected revenue increases of $232 million.
The SRIA further indicates that card rooms could face a loss of 364 full-time jobs annually over the next decade. Such projections have sparked concern among local business leaders and city officials who rely on gaming-related tax income.
Club One Casino, which moved to Granite Park in 2021 after pandemic-related shutdowns, employs 250 staff members and contributes approximately $1 million yearly to Fresno’s general fund. The casino features poker and modified blackjack variants, including Spanish 21.5 and Pure 21.5. A comparable setup is found at The 500 Club Casino, located on the Clovis-Fresno border.
“It’s a clear competitive overstep by tribal casino owners,” stated Kyle Kirkland, president of the California Gaming Association and owner of Club One Casino in Fresno, in a Fresno Bee article. “They are not pleased with card rooms encroaching on their business. Hence, they are applying pressure on the attorney general.”
Kirkland emphasized that table games account for about 50% of Club One’s revenue. “If we can no longer offer table games, that’s a significant hit to our income. Losing half of your household budget would force many people to relocate,” he explained. “This proposal could be disastrous for card rooms, jeopardizing jobs and livelihoods.”
Critics also warn that the proposed regulations would “drastically undermine municipalities that heavily depend on tax revenues for essential community services, including public safety and senior programs,” according to Casino Beats.
Card room employees and advocates staged a protest outside Attorney General Rob Bonta’s office in Fresno on Thursday, arguing that the regulations could lead to hundreds of job cutbacks.
Kirkland highlighted that card rooms significantly contribute to municipal funds and support local nonprofits. “Eliminating these games would have a profound impact on the residents of Fresno and Clovis, as well as many other communities heavily reliant on card establishments,” he asserted. “There appears to be a focused effort to eradicate tax-paying card rooms, often overlooked by individuals unaware of our contributions.”
This proposal follows a ruling from the Sacramento Superior Court that dismissed a lawsuit filed by several tribal casinos against card rooms. The tribes contended that the card rooms’ modified blackjack and baccarat games were not compliant with state gaming laws.
The lawsuit was initiated under Senate Bill 549, a 2024 measure permitting tribes to legally challenge card rooms for alleged infractions. Tribal operators are anticipated to appeal the ruling.
Following the dismissal of the lawsuit, the DOJ now faces mounting pressure to act through regulation. A state-commissioned impact report suggests that limiting card room operations could diminish patronage by around 50% and incur further losses in municipal tax revenue.
“At present, we maintain a fair equilibrium,” stated Chris Linger, a worker at Capitol Casino. “Tribal casinos can offer slot machines and extensive gaming options, while card rooms provide table games that bolster local economies.”