Recently, a group of card room operators in California have joined forces to take legal action to prevent a new gambling regulation that will take effect on April 1. The California Gaming Association, composed of several card rooms, has applied for a preliminary injunction at the San Francisco Superior Court, requesting a delay in the implementation of these new rules. The new regulations, proposed by California Attorney General Rob Bonta, primarily prohibit the operation of house-banked card games (such as blackjack), allowing only player-versus-player game formats. This change is seen by the industry as a reinforcement of the exclusive operating rights of tribal casinos, while card room operators view it as a subversion of decades-old rules. Frankly speaking, if the new regulations are implemented, many card rooms might really not survive.
Impact of the New Regulation: Games like blackjack face bans, card room revenues may be halved
According to the new regulations, house-banked card games long provided by card rooms will be completely prohibited. The California Gaming Association, in two lawsuits filed in March 2026, claims that these changes contradict decades of legal consensus previously reviewed and approved by multiple attorneys general. Industry leader and Vice President and General Counsel of Chula Vista's Seven Mile Casino, Heather Guerena, warns that the new restrictions could lead to the closure of some card rooms, with their associated casinos expected to lose at least 40% of their revenue. "If we calculate a minimum business loss of 40%, this ratio could be extrapolated to the entire industry," she said. More seriously, as one of the most popular games, the ban on blackjack could lead to a total business loss of up to 50% for card rooms. These figures are not alarmist but are based on real calculations from existing business models.
The economic loss is not limited to card rooms themselves. Guerena points out that local communities will also feel the impact, as a portion of card room revenues is returned to the city for infrastructure and public services. "When people play here, part of the funds go back to the city, helping to improve infrastructure and public safety." In other words, the ripple effects of the new regulations could reach a broader social level.
Tribal Casinos vs. Card Rooms: Legal Battle Escalates
Tribal leaders support the new regulations, seeing them as a necessary step to uphold the integrity of California's gambling laws. Nick Bryson of the Shingle Springs Miwok tribe expressed satisfaction that the Attorney General has clarified the rules and hopes they will now be enforced. Currently, card rooms have been asked to submit compliance plans to the Department of Justice by June 1, but the industry is actively seeking further extensions. The California Gaming Association has filed two lawsuits and is seeking a preliminary injunction to prevent the enforcement of the new rules while their legality is reviewed by the court.
Guerena, also a member of the CGA board, emphasizes, "The games we play have been licensed since the early 2000s. Part of our dissatisfaction stems from the fact that these rules have been reviewed by multiple attorneys general to ensure they comply with the law." This legal battle is expected to last a long time, with both sides preparing for a lengthy court process. From a broader perspective, this conflict reflects the long-standing structural contradictions in California's gambling industry—the boundaries of interests between tribal casinos and commercial card rooms have never been clearly defined.
As the June 1 deadline for submitting compliance plans approaches, the card room industry is uniting to seek a dual breakthrough on political and legal levels. Regardless of the outcome, this struggle will have a profound impact on California's gambling landscape. For more updates on U.S. gambling regulations, continue to follow PASA official website.
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