California AG’s proposed cardroom regulations spark backlash over economic fallout

California Attorney General Rob Bonta is facing mounting opposition from lawmakers, local officials, and industry leaders over proposed gambling regulations that critics warn could lead to thousands of job losses and slash critical funding for city services.

The draft rules target key aspects of how cardrooms operate, particularly their use of Third-Party Proposition Player Services (TPPPS) and blackjack-style games. Under the proposed changes, only seated players could serve as player-dealers, TPPPS would be prohibited from settling wagers unless in that role, and the player-dealer position would be required to rotate every 40 minutes to at least two participants, or the game would end. Only one TPPPS would be allowed per table.

The rules also take aim at blackjack-style games by prohibiting terms like “blackjack,” “21,” and “bust,” banning any target number of 21, and requiring that in the case of a “push,” players win. All existing games resembling blackjack would have to be resubmitted for approval under the new standards.

A Standardized Regulatory Impact Assessment (SRIA) commissioned by the state paints a stark picture of the potential fallout. Cardrooms could lose between $396 million and $464 million in annual revenue, with an estimated 311–364 full-time jobs lost each year over the next decade — a cumulative total of more than 3,600 jobs. Meanwhile, tribal casinos could see a revenue gain of $198–232 million, resulting in a net sector loss of $198 million.

“We strongly oppose the Attorney General introducing unwarranted regulations to games that have been played legally for decades,” said Hawaiian Gardens Mayor Dandy De Paula. “We rely on our cardroom not only to provide high-quality jobs but for the tax revenue that makes up over 78% of our city’s general fund.”

Other cities, including Commerce and Bell Gardens, where cardrooms contribute roughly 50% of general budgets, have voiced similar concerns. Officials in Fresno and Clovis warn that the changes could cost their communities millions in tax revenue and hundreds of jobs.

“These regulations pose a direct threat to good-paying jobs and would devastate our economy,” said Assemblyman David Tangipa (R-Clovis). “I strongly urge the Attorney General to withdraw these harmful and unnecessary regulations.”

Bonta’s proposal comes amid ongoing legal tensions between California tribes and cardrooms. Tribal operators claim cardrooms have illegally bypassed gaming compacts that grant tribes exclusivity over banked games. In January, a coalition of tribes filed a lawsuit in Sacramento County Superior Court under the Tribal Nations Access to Justice Act. The next hearing is scheduled for August 8.

Cardroom representatives say the industry has followed existing regulations for decades and provides critical employment and tax revenue across the state.

“Cardrooms have legally operated these highly regulated games for decades,” said Kyle Kirkland, president of the California Gaming Association. “We remain confident the legal process will uphold what’s right for the tens of thousands of Californians who depend on cardroom jobs.”

Bonta’s office has not finalized the regulations and is still reviewing public input.