California officials have approved sweeping regulations that will bar blackjack-style games from operating in cardrooms across the state, setting up a renewed clash between commercial cardroom operators and tribal casinos.

Attorney General Rob Bonta’s Department of Justice submitted two sets of regulations to the Office of Administrative Law on December 23, 2025. The office signed off on the rules late Friday, clearing the way for them to take effect April 1. Cardrooms will then have until May 31 to file plans explaining how they will comply.

The changes target player-dealer rotation games and variations of blackjack that have been offered for years in licensed cardrooms. State law prohibits “banked” games, in which the house wagers against players, except on tribal land. To operate within that restriction, cardrooms have relied on third-party providers who employ “player-dealers” and offer games such as “California Blackjack” or “Blackjack 21.5,” formats that resemble traditional blackjack.

Tribal casino operators have long argued that those games sidestep state law. A 2024 Senate Rules Committee analysis described the conflict as a “long historical feud,” noting: “Going back to 2007, opinion letters or other actions on the matter by regulators have been issued, reversed, and further issued with no definitive clarity or action. In some cases, California’s Cardrooms claimed the action went too far while the tribes said they did not go far enough.”

Industry Warns of Economic Fallout

Cardroom representatives say the new interpretation will force them to eliminate some of their most popular offerings. Kyle Kirkland, president of the California Gaming Association and owner of Fresno’s Club One Casino, has predicted deep financial losses.

“It’s just a dramatic, hard, 180-degree pivot in how the law is being interpreted, and that’s what we have the problem with, that it’s like, without any real reason, any visible harm to the public, we’re having a 180-degree change in how these games are being interpreted, and it’s devastating,” Kirkland said.

He has stated that cardrooms could lose about half their revenue. The Bureau of Gambling Control’s own economic assessment projects roughly 50% of cardroom jobs could disappear. The Department of Justice estimates about 18,000 people work in cardrooms statewide, earning $730 million in wages. Kirkland contends the workforce exceeds 20,000.

In a written statement, Kirkland said: “Attorney General Bonta and the Bureau have unilaterally implemented extreme regulatory changes that will harm thousands of working families and the dozens of California communities that depend on cardroom taxes. By the Bureau’s own simplistic economic assessment, these unnecessary regulations will eliminate over half of all cardroom jobs and force many communities to cut police, fire, parks, senior and food programs when the long-standing tax base disappears.”

Club One alone contributes $1 million each year in tax revenue to the city of Fresno, according to Kirkland. He has warned that many cities rely on similar revenue streams to fund essential services.

Other operators describe potential staffing reductions. Joseph Melech, co-owner of Stars Casino in Tracy, said the business employs 80 full-time workers and expects at least 20% of those positions to be affected. “Right now, we’re doing well with our local charities and with job creation, and if some of these regulations go into effect, it’s going to affect the games that we offer, and the things that we’re going to be able to do for our community, like most card rooms and their communities,” Melech said.

Heather Guerena, chief counsel for Stones Gambling Hall in Citrus Heights, said eliminating blackjack variations would remove 40% of her property’s revenue. “We provided (the Bureau) with over 150 pages of legal authority explaining why these were inappropriate, and they did not take or provide, from our perspective, an adequate response to any of the legal arguments presented,” Guerena said according to The Sacramento Bee.

Legal Challenges and Tribal Support

Cardroom leaders have signaled they will challenge the regulations in court. “Candidly, we’re not ready to just give up and fold up shop by April 1,” Kirkland said. “We’ve had our lawyers working on this. There’s going to be some legal pushback.”

He has also criticized the rulemaking process, arguing regulators did not properly consider public input. The Office of Administrative Law reported receiving 888 comments on blackjack regulations and 876 on other rule changes after two public meetings in May 2025. A news release from the agency stated that no substantive changes were made following more than 1,600 comments.

“They took nothing. It was not a transparent process at all. It’s very heavy handed, we, the card room industry don’t think they have the legal justification to go forward with these regulations,” Kirkland said. “We think their process was flawed and they failed to follow the law. We’re gonna push back. It’s too important. It’s devastating to us.”

The Department of Justice has rejected those claims. In a statement, a press office spokesperson said, “This lengthy process, over multiple years, involved public hearings where DOJ heard from hundreds of stakeholders and numerous additional meetings and discussions with stakeholders about these proposed regulations.” The department also stated it responded to 1,764 public comments.

Tribal gaming organizations have welcomed the decision. California Nations Indian Gaming Association Chairman James Siva said: “These regulations are an important step in combating unscrupulous and illegal gambling in California. The regulations further clarify that games and practices employed by commercial card rooms are indeed prohibited under California law,” Siva said. “Running a business contrary to that law is an illicit business, period. We hope that Department of Justice will now enforce these regulations so California can ensure a well-regulated gaming industry that is safe for consumers.”

Under the new rules, tribal casinos such as Table Mountain, Chukchansi Gold, and Tachi Palace will continue to offer blackjack. Cardrooms, however, must remove or significantly alter those games by April 1 unless ongoing legal efforts delay enforcement.