California AG Bonta Recommends Sweeping Changes to Cardrooms

Proposed state regulations on California's cardrooms could severely impact Fresno and Clovis, potentially costing the region hundreds of jobs and millions in tax revenue, according to state analysis and local officials.

Attorney General Rob Bonta's new proposals specifically target player-dealer practices and certain types of blackjack games within cardrooms. Currently, player-dealers often rotate informally and use third-party proposition services, known as TPPPS, to bankroll games.

The proposed cardroom rules would mandate that only individuals physically seated at the card table could serve as player-dealers, requiring rotation every 40 minutes. Additionally, TPPPS would be barred from settling wagers unless occupying the player-dealer seat directly.

The regulations also seek changes to blackjack games, prohibiting those with a "bust" rule or point counts other than 21. Any blackjack variant would require individual approval from the state.

California only permits blackjack at tribal operated casinos and these specific cardrooms, which have frequently been controversial. Cardrooms are often operated by small community organizations and some critics (often tribal leaders) claim there are unregulated gaming activities taking place that should only occur at a licensed California casino.

California’s Standardized Regulatory Impact Analysis (SRIA) projects significant economic repercussions. It anticipates a 50% drop in revenue for TPPPS firms, alongside an estimated loss of 25% of current cardroom customers, who might prefer tribal casinos exempt from these restrictions. This shift could yield a statewide net gaming loss of about $198 million, with cardrooms losing $396 million, partially offset by tribal casinos gaining $198 million.

The suggestion by the top law enforcement officer in the most populous state comes as other leaders across the nation are taking a look at cardrooms. District of Columbia Mayor Muriel Bowser has expressed an interest in legalizing poker and blackjack across D.C. In order for that to happen, the Poker and Blackjack Gaming Authorization Act of 2025 would need to be passed. Bowser wants cardrooms in D.C. to be taxed at 25%.

Critics: Decision Could Result in Loss of More Than 300 Jobs

The analysis further predicts an average annual loss of 311 jobs between 2026 and 2035 directly linked to the proposed changes.

Assemblyman David Tangipa (R-Clovis) sharply criticized Bonta's proposed regulations, highlighting the potential harm to local economies.

“Our cardrooms have long been vital to Fresno and Clovis, creating stable employment and generating crucial tax revenue,” Tangipa said in a statement. “Businesses like 500 Club Casino and Club One Casino are among our community's biggest economic contributors. These regulations would severely undermine these benefits. I strongly urge the Attorney General to reconsider and withdraw these harmful proposals.”

In addition, tribal nations in California have opposed cardrooms or any expansion of gambling in this state that aren't handled through them. In 2022, state voters defeated a referendum that would have legalized sportsbooks. In 2024, state lawmakers passed the Tribal Nations Access to Justice Act, which remands gaming to tribal nations exclusively. Still, commercial cardrooms are allowed to operate in Fresno and Clovis. But threats from Bonta may challenge that.

California’s cardrooms have long been a distinctive part of the state’s gaming landscape, tracing their history back to the gold rush era of the mid-19th century. Initially small, informal spaces where miners and settlers gathered to gamble, these establishments evolved into regulated cardrooms featuring poker and blackjack-style games. Today, they operate under unique state laws that prohibit games where players bet against the house. Instead, players compete against each other, with third-party companies often facilitating the dealer position.

Currently, California boasts around 60 licensed cardrooms, contributing significantly to local economies through job creation and tax revenue. Major cities like Los Angeles, San Jose, and Fresno rely heavily on cardrooms, which employ thousands statewide.

Bonta's challenges, however, have sparked controversy. His proposed regulations seek stricter controls on third-party dealer positions and betting procedures, potentially reshaping how cardrooms operate.

The proposed changes could significantly impact employment, revenue streams, and the gaming industry’s future in California. Cardroom operators warn that overly restrictive regulations might lead to widespread job losses and economic damage, particularly affecting communities reliant on these gaming establishments. The ongoing debate underscores the delicate balance between regulatory oversight and economic interests.

Public hearings on the proposed regulations are scheduled for Wednesday and Thursday.