\u201cThe regulations would dramatically reduce the tax revenue that the city receives from its licensed cardrooms, forcing cuts that would affect both City employees and the residents who rely on these vast services,\u201d Emily Lam, who directs the Office of Administration, Policy and Intergovernmental Relations, wrote in the city\u2019s letter. \u201cThe City of San Jose has included this revenue in budget forecasts for years, and any loss of revenue would severely disrupt city operations.\u201d<\/p>\n Bonta, along with the Bureau of Gambling Control, proposed the changes, which were approved by the California Office of Administrative Law earlier this month. The changes\u00a0begin to take effect April 1<\/a>.<\/p>\n The new regulations target so-called \u201cplayer-dealer\u201d card games \u2014 such as blackjack, baccarat and Pai Gow \u2014 in which players, rather than the casino, act as the \u201cbank,\u201d paying winners and collecting from losers. Under California law, only casinos located on tribal land may directly operate banked games, in which the casino takes the role of the house.<\/p>\n Among the changes, the rules impose a time limit on how long one player may hold the role of dealer at a table. The rules also effectively ban blackjack, along with close variants, from non-tribal casinos. Games that do not have a house, like many varieties of poker, will not be affected.<\/p>\n The California Department of Justice said\u00a0in a memo<\/a>\u00a0the changes\u00a0are intended to\u00a0close loopholes that have allowed card rooms to skirt regulations.<\/p>\n But Rob Lindo, vice president and director of Casino M8trix, said the new rules strike at the heart of his company\u2019s business model.<\/p>\n \u201cWe make 85% of our revenue off player-dealer style games, and about a third of that is blackjack,\u201d\u00a0he told San Jos\u00e9 Spotlight.<\/p>\n Without blackjack, among the most popular draws for card rooms, and with the new restrictions for player-dealer games, Lindo predicts casinos could lose customers. In turn, Lindo said the card rooms may be forced to respond with layoffs.<\/p>\n San Jose\u2019s gambling industry \u2014 including the two card rooms as well as third-party companies that operate banked games \u2014 employs roughly 2,000 people, according to Lindo.<\/p>\n \u201cIt will definitely involve a downscaling,\u201d Lindo said. \u201cWe really believe that people need to be aware that this threat is coming within the next five-to-six months.\u201d<\/p>\n Bay 101<\/a>\u00a0declined\u00a0to comment.<\/p>\n The expected loss of tax revenue would hit San Jose when it is already struggling financially. The city\u2019s latest budget forecast projects a\u00a0$55 million-to-$65 million deficit<\/a>\u00a0for\u00a0fiscal year 2026-27, as a lagging local economy has slowed revenue from sales and property taxes.<\/p>\n San Jose leaders had already been pushing to\u00a0relax local regulations<\/a>\u00a0imposed on\u00a0the city\u2019s card rooms<\/a>. Among the\u00a0bevy of rule changes<\/a>\u00a0carried out in recent months, the City Council\u00a0voted in August to reduce annual fees for each card room from $1 million to $857,000.<\/p>\n Outside of San Jose, card room advocates are rallying opposition to the pending regulatory crackdown. Officials with the California Gaming Association have said card rooms\u00a0throughout the state<\/a>\u00a0are preparing legal action in response to the new rules.<\/p>\n \u201cAttorney General Bonta and the Bureau (of Gambling Control) have unilaterally implemented extreme regulatory changes that will harm thousands of working families and the dozens of California communities that depend on cardroom taxes,\u201d California Gaming Association President Kyle Kirkland said in a statement.<\/p>\n Bonta\u2019s office did not respond to a request for comment.<\/p>\n Contact Keith Menconi at\u00a0keith@sanjosespotlight.com\u00a0or @KeithMenconi on X.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/1772486293_660_LNM-20250616-SJSPOTLIGHTLOGO-01.jpg\")
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The front entrance for Casino M8trix, one of San Jose\u2019s two licensed card rooms. (Keith Menconi\/San Jos\u00e9 Spotlight)<\/p>\n