Published on: February 18, 2026, at 08:47h.
Updated on: February 18, 2026, at 08:47h.
- Cardrooms express concern that new regulations may significantly impact business operations
- Cities worry about decreased tax revenues for essential services
- Industry leaders promise to challenge the changes to blackjack-style games legally
California cardroom advocates warn that impending restrictions on blackjack-style games could jeopardize the livelihoods of numerous employees and affect municipal finances, as well as the sustainability of many small to mid-sized gambling establishments across the state.
On February 6, state regulators sanctioned a new regulatory framework that essentially bars cardrooms from operating their games in the current format.
Under the updated guidelines, players will no longer ‘bust’ if they exceed a specific total. Instead, each hand’s outcome will be determined by comparing the player’s cards with those of the player-dealer. Moreover, an ace paired with a 10-value card will no longer symbolize an automatic victory.
The new regulations also restrict cardrooms from promoting or labeling any game with the numeral “21” or the term “blackjack.”
Economic Consequences
Kyle Kirkland, the president of the California Gaming Association, informed CBS Sacramento that this sector is a $6 billion industry that sustains 20,000 families and generates approximately $500 million annually in state and local tax revenues. He cautioned that this regulatory change might lead to at least a “50% decrease” in business activity.
“This is a significant, abrupt shift in how the law is interpreted, and that’s where the issue lies… without any justifiable cause or evident harm to the public, we are witnessing a drastic alteration in how these games are viewed, which is catastrophic,” he conveyed to CBS.
In contrast to tribal casinos, which operate under distinct state agreements, California’s cardrooms are commercial establishments licensed to contribute directly to local government funds.
In municipalities like San Jose, Hawaiian Gardens, Commerce, and Gardena, gambling revenues play a pivotal role in funding police and fire services, road upkeep, and other essential programs. San Jose, for instance, acknowledges receiving about $30 million annually from cardroom activities, say city officials.
Industry proponents like Kirkland assert that if the number of tables decreases or popular games are altered into less familiar variations, customer turnout could drop dramatically, leading to revenue reductions, fewer working hours, and strained local finances that many cities depend on for vital services.
Tribal Disputes with Cardrooms
For years, influential tribal casino operators within California have resisted the existence of cardrooms’ so-called “California games,” which are revised versions of classic table games such as blackjack and pai gow poker, claiming these infringe their exclusive rights to run house-banked casino games.
While tribal operators are finally realizing their objectives, Kirkland claims that it will be cardroom employees and the cities that rely on them who will bear the economic burden.