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The new regulations roll back the use of third-party player-dealers in card games like blackjack and could prompt legal action from cardrooms and cities.
A multi-year process to put new rules in place for cardrooms in California is complete, and the results include significant changes for commercial gaming facilities across the state. Due to the significance of the changes imposed by the new regulations and municipalities’ reliance on local tax revenue from the cardrooms, litigation could be on the horizon.Â
California attorney general finalizes new cardroom regulations
According to a press release from California Attorney General Rob Bonta, “two sets of California Department of Justice regulations governing cardrooms” received approval from the Office of Administrative Law on Friday. The new rules will take effect on April 1, 2026.
Licensed cardrooms in California have until May 31 to submit plans for how they will modify their card game offerings to comply with the regulations, though. The forthcoming rules impose new standards for how and when cardrooms can utilize third-party player-dealer services.
Cardrooms have utilized these services as a “work-around” to provide blackjack and other card games in a manner familiar to players. California law reserves house-banked card games for tribal casinos in the state but these “player-banked” games have been the topic of legal disputes for decades in the state.
The new regulations limit the use of third parties that contract with the card rooms to fill the role of the player-dealer in an attempt to make the games more truly player-banked. However, that could put these rules squarely at the center of additional litigation.
Cardrooms, trade group levy criticism of new regulations
Complicating the situation around cardrooms in California is their status as employers and tax revenue providers to cities in the state. Kate Wolffe of the Sacramento Bee has shared some perspective from the cardrooms on the new regulations.
According to Wolffe, Heather Guerena, who is the chief counsel for a cardroom in Citrus Heights, claims that the reduction in blackjack offerings could result in the business losing up to 40% of its revenue. Wolffe also reports that California Gaming Association President Kyle Kirkland characterized the changes as “extreme” and alleges that proper procedures were not followed to put the regulations in place.
However, Bonta’s release states that his office “received 876 comments on the proposed Player-Dealer regulations and 888 comments for the Blackjack regulations.” Additionally, the statement claims that the Department of Justice “held numerous meetings with stakeholders to discuss potential regulation of games,” including two public hearings.
Procedural questions could become the subject of legal action brought in state courts by cardrooms and/or the cities they inhabit. Such litigation could ask the court to issue an injunction against the new rules taking effect and bar their enforcement.
Bonta’s office will probably defend the regulations even as it is involved in clarifying the legal structure for other types of gaming. The best online casinos in other US states have no legal presence in California at this time.
Any future expansion that might allow Californians to enjoy bonuses like the Fanatics Casino promo code would involve many stakeholders like cardrooms and tribal casinos. So far, tribal casinos have resisted such expansion. No legal fastest payout online casinos currently exist in the state.
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Although these regulations are final, the dispute over the legality of player-banked card games at commercial gaming facilities in California may have only entered a new chapter. With the effective dates of the rules forthcoming, stakeholders are likely already analyzing their legal options.
