As a grace period that California Attorney General Rob Bonta gave card room operators in California speeds toward its expiration, three California cities have received approval to intervene in a lawsuit challenging Bonta’s new regulations for card rooms. Colma, Gardena, and Inglewood will file a joint amicus brief in support of the plaintiffs in the pair of lawsuits.
The litigation is relevant for the cities’ interests because of the local taxes on card room revenue they have received over the course of several years. Unless the court enjoins Bonta’s enforcement of the rules soon, those municipalities may soon witness the impact of the changes.

On May 2, the San Francisco Superior Court approved a petition for leave to file an amicus brief from Colma, Gardena, and Inglewood. Colma is home to the Lucky Chances card room, while Gardena is the site of the Larry Flynt’s Lucky Lady Casino and the Hollywood Park Casino makes Inglewood its home.
In their request, the cities explained that revenue shares from these card rooms represent a significant portion of their annual income. Reductions in business for the card rooms will cause municipal officials to adjust spending as a result.
The pair of lawsuits against Bonta allege that he overstepped limits on his authority as California attorney general and that his new regulations for card rooms will have a devastating economic effect on the businesses. The complaints ask the court not only for a preliminary injunction blocking enforcement but a declaration voiding the rules as well.
Time is running short for the court to grant injunctive relief prior to Bonta’s publicized enforcement of the regulations. That action could begin in a matter of weeks.
Although Bonta’s new regulations for cardrooms technically took effect on April 1, he gave card rooms through the end of May to submit plans for how they would adjust their games to comply with the rules. Bonta could extend that enforcement out further in light of the pending litigation.
The San Francisco court has given no indication of how soon it may rule on the requests for preliminary injunctions. The cities’ amicus brief will probably add to the voices compelling the court to enjoin Bonta’s enforcement.
The new rules effectively ban blackjack at card rooms in California via new rules governing card rooms’ usage of third party player proposition services. In his filing of the regulations, Bonta explained that California law and tribal gaming compacts that California is part of restrict the legal offering of blackjack to tribal casinos within the state’s borders.
However, card rooms have offered blackjack-style games using the third party player proposition services by not having an interest in the game but rather contracting with those services to act as the banker in the games. The lawsuits argue that new restrictions on the usage of those services will result in a significant loss in business at card rooms, as blackjack is the most popular game at the venues.
Whether the court grants the requests for preliminary injunctions or not, the trial later this year will determine the future of gaming in California, barring a settlement between Bonta and the plaintiffs. Three of the California cities that host card rooms have made their interest in the litigation known to the court.
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