A coalition of California cardrooms is taking legal action to block new state regulations they argue will severely impact their operations. The California Gambling Association (CGA), representing several cardroom operators, filed for a preliminary injunction in San Francisco Superior Court, seeking to delay the enforcement of these new rules, which are set to take effect on April 1, 2026.

The Dispute Over New Gambling Rules

The new regulations, proposed by California Attorney General Rob Bonta, target blackjack and other house-banked games, which are traditionally offered by cardrooms. Under the revised rules, these games would be banned, with cardrooms only allowed to offer player-versus-player formats. The changes are seen as an effort to enforce existing laws that grant exclusive rights to tribal casinos for operating house-banked games, such as blackjack.

While the state has positioned these regulations as a necessary step to ensure fairness and protect the interests of tribal casinos, cardroom operators contend that they represent a breach of the status quo. The new measures could potentially strip local cardrooms of up to 50% of their business, as blackjack is one of the most popular games for players.

The regulations’ potential impact extends beyond the games themselves. Industry leaders, including Heather Guerena, Vice President and General Counsel for Seven Mile Casino in Chula Vista, are raising alarms about the loss of jobs and tax revenue. Guerena expressed concern that the new restrictions could lead to the closure of some cardrooms, with businesses like Seven Mile Casino potentially losing up to 40% of their revenue. “If you consider the fact that we’re expected to lose a minimum of 40% of our business, you can also apply that across,” said Guerena.

The economic repercussions are not limited to the casinos themselves. According to Guerena, local communities would also feel the loss, as a portion of the revenue from cardroom operations goes back into city infrastructure and public services. “When people play here, a portion of the funds goes back into the city, and that helps with infrastructure, that helps with public safety,” Guerena explained.

Cardrooms Seek Legal Relief

As the regulations loom, the CGA has mounted a legal defense against the new rules. The association filed two lawsuits in March 2026, arguing that the changes contradict decades of established law. They assert that previous attorney generals reviewed and approved these gaming operations, and that these sudden changes are unjustified. The CGA is also seeking a preliminary injunction to prevent the enforcement of the rules while the courts review their legality.

“The games we play have been licensed since the early 2000s, and part of why we’re upset is because previous attorney generals have already reviewed these rules for compliance with the law,” said Guerena, who also serves on the board of directors for the CGA.

Tribal leaders, however, have supported the new regulations, arguing that the changes are necessary to maintain the integrity of California’s gambling laws. Nick Bryson of the Shingle Springs Band of Miwok Indians noted that cardrooms had been operating games like blackjack under the assumption that they were in compliance with the law, but there was little enforcement to back this up.

“The cardrooms… felt like they were operating appropriately because no one was enforcing it against them,” Bryson said, according to ABC10. “I’m pleased the Attorney General has made clear his rules, and I hope he’ll enforce them now.”

The legal battle is expected to intensify as both sides prepare for a protracted court process. Cardrooms have been given until June 1, 2026, to submit plans for compliance with the DOJ’s new regulations, but many in the industry are pushing for a delay, arguing that the financial strain caused by these changes could be devastating.