The ruling has won cheers from card rooms and gaming industry trade groups, many of which signed on as plaintiffs in the lawsuit, as well as from San Jose\u2019s leaders<\/a>, who have lobbied Bonta to change course.<\/p>\n Mayor Matt Mahan has estimated that if the rules went into effect, the city\u2019s already shaky budget<\/a> would take a $25 million hit, the result of the lower taxes and fees that would be contributed by the city\u2019s two card rooms, Casino M8trix and Bay 101<\/a>.<\/p>\n \u201cWe are pleased the court recognized the importance of preventing these harmful regulations from taking effect,\u201d Mahan told San Jos\u00e9 Spotlight. \u201cThis decision protects our residents, local economy and the essential public services our community depends on.\u201d<\/p>\n Bonta\u2019s office still has the option of appealing the ruling. A spokesperson called the outcome disappointing, and told San Jos\u00e9 Spotlight the agency is reviewing its options.<\/p>\n The regulations had been set to take effect<\/a> June 1, until an earlier ruling put those plans on hold.<\/p>\n The rules effectively ban blackjack, along with close variants, from non-tribal casinos. They also crack down on the card room practice of offering \u201cplayer-dealer\u201d games \u2014 such as blackjack, baccarat and Pai Gow \u2014 in which players, rather than the casino, act as the house, paying winners and collecting from losers.<\/p>\n California\u2019s tribal casinos have long contended that the player-dealer play format allows card rooms to skirt state laws that prohibit casinos outside of tribal lands from directly operating house-banked games.<\/p>\n Curtailing player-dealer games would shake the business model used by the dozens of card rooms scattered across California<\/a>, including those in San Jose. At Casino M8trix, such games generate 85% of revenue, according to Rob Lindo, the card room\u2019s vice president and director.<\/p>\n The loss of this business would lead to a reduction in the roughly $12.5 million in licensing fees and taxes Casino M8trix pays to San Jose and Santa Clara County each year, Lindo said. In addition, he warned the city\u2019s card rooms<\/a>, which employ about 2,000 people, would likely be forced to consider layoffs.<\/p>\n \u201cWe\u2019re pleased that this decision allows us to continue providing these significant economic benefits to our community,\u201d Lindo told San Jos\u00e9 Spotlight.<\/p>\n The court case has centered on the question of whether the Bureau of Gambling Control has the authority to enact this new set of card room regulations.<\/p>\n The California Gaming Association, an industry trade group involved in the case, has argued that the bureau is primarily an enforcement agency \u2014 and therefore it does not.<\/p>\n \u201cFor more than a year, we have said this case is about far more than gaming \u2014 it is about whether the attorney general and his regulators can bypass the Legislature and unilaterally rewrite decades of established law,\u201d California Gaming Association President Kyle Kirkland told San Jos\u00e9 Spotlight.<\/p>\n In contrast, officials with the California Department of Justice, which includes the Bureau of Gambling Control, contend the regulations are intended only to strengthen enforcement of existing state gaming laws.<\/p>\n Anticipating the fiscal damage the regulations could bring, San Jose\u2019s Office of Administration, Policy and Intergovernmental Relations wrote to Bonta\u2019s office in February, urging him to reconsider.<\/p>\n A drop in card room revenue could make San Jose\u2019s fiscal outlook even more precarious. The city\u2019s recently passed budget balanced a $50 million deficit<\/a>, but only after tapping into reserve funds and cutting into a wide array of city services. Officials project that the city will face somewhat smaller deficits in the next two budget cycles<\/a> as well.<\/p>\n \u201cThe city continues to monitor the case and possible actions that the California Gambling Control Commission and California Legislature may take,\u201d Demetria Machado, a spokesperson for the City Manager\u2019s Office, told San Jos\u00e9 Spotlight.<\/p>\n![\"In-line](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/interactive-321838904008.png\")
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