The California Gaming Association has initiated two legal actions in San Francisco Superior Court against new gambling regulations authorized by Attorney General Rob Bonta, claiming these regulations jeopardize thousands of jobs and the financial health of cities dependent on cardroom earnings.
The lawsuits, backed by the California Cardroom Alliance and Communities for California Cardrooms, aim to prevent the implementation of regulations from the California Department of Justice’s Bureau of Gambling Control that are set to abolish blackjack-style games and heavily restrict player-dealer games in the state’s cardrooms.
Citing the Attorney General’s own Standardized Regulatory Impact Assessment, the gaming regulations could potentially eliminate at least 50% of jobs and revenue in cardrooms, an outcome the industry claims could lead to the closure of numerous facilities.
Unless the court intervenes, the new regulations are scheduled to take effect on April 1, 2026, with modifications to cardroom games potentially starting as early as June.
The lawsuits contend that these regulations signify an unprecedented overreach of authority by the Attorney General and run contrary to existing state law regarding cardroom operations.
The proposed rules overturn decades of established legal practices that were deemed permissible by previous Attorneys General, including former California governor Jerry Brown and former U.S. vice president Kamala Harris, according to the California Gaming Association.
The cardroom sector asserts that these regulations were finalized despite widespread dissent expressed during the rulemaking phase. The Department of Justice officially adopted the rules on February 9, even after receiving 1,764 public comments, the majority of which raised issues regarding their legality and potential economic repercussions.
Kyle Kirkland, President of the California Gaming Association, commented: “Attorney General Bonta’s regulations threaten to eliminate over half of California’s cardroom jobs and devastate critical revenue streams for numerous cities. These games have been legally operated for decades under multiple Attorneys General, yet one public official is moving to shut them down without substantiating any public safety concerns or addressing the 1,764 comments received about these regulations.
“We have consistently voiced legal and economic concerns throughout the regulatory process, but the Attorney General has not engaged with the affected communities and families. We urge the court to block these unlawful regulations before they lead to the loss of thousands of jobs and plunge many local economies into fiscal crisis across California.”
The California Gaming Association noted that many cities, labor organizations, and community groups have cautioned that these regulations could result in significant budget deficits for municipalities heavily reliant on cardroom revenue.
In correspondence with the Attorney General, San Jose officials cautioned that income from cardrooms is essential for funding police, fire, and 9-1-1 services.
The City of Commerce has proposed a quarter-cent sales tax measure for the June 2026 ballot to mitigate potential revenue losses attributed to the new regulations. Other cities are reportedly contemplating similar measures, as indicated by the industry group.