Changes are coming to California’s gaming industry after the state approved new rules that will prohibit traditional blackjack at the state’s cardrooms.
The Office of Administrative Law approved the changes which will have a major impact on the game played in nearly 75 cardrooms across the state.
The changes include some severe changes, including:
- Venues can’t use the word “blackjack” or “21” game titles.
- No more automatic wins if dealt a blackjack (an ace and a 10-value card).
- No more “busting.” Instead, a winner is determined by being the closest to the “target point count” compared to the player-dealer, the player acting as the house in these types of games.
- Backing the game (acting as player-dealer) must be given to at least two other players every 40 minutes or the game ends.
- Third-party providers can’t operate as the bank consecutively. This has traditionally been one of the main methods cardrooms used to operate these games.
The rules become effective on April 1, and cardrooms have until May 31 to submit compliance plans.
Major Impact On Industry
Industry stakeholders expect the changes to drastically shift the current landscape. According to the California Gaming Association (CGA), the state’s 72 cardrooms employ more than 23,000 people, generate more than $2 billion in annual economic activity, and contribute over $300 million in federal, state, and local tax revenue every year.
The CGA said the changes could result in up to 50% of employees losing their jobs, hurting families and cities that rely on tax revenue from the properties. The association noted that the Bureau of Gambling Control pushed for the new rules without explanation or public input.
“Attorney General [Rob] 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,” CGA President Kyle Kirkland told Courthouse News Service. “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.”
The rules bring significant changes to the role of player-dealer. To comply with laws that give tribal casinos exclusivity over house-backed games, cardrooms offloaded the responsibility backing the game. They gave the role to a third-party with deep pockets.
Many players in the game would not want to take the financial risk of potentially paying the whole table. Furthermore, there’s less incentive for third parties to back the games since their expected earnings just dropped. The new game format also offers a significant change to what players have come to know as cardroom blackjack.
Tribal Groups Want Cardrooms Abolished
The new rules come after California’s tribal gaming operators have pushed to abolish cardroom blackjack and other games entirely. Under California’s legal landscape, tribes have exclusivity over slot machines and house-backed table games like blackjack.
In September 2024, Gov. Gavin Newsom (D) signed SB 549, allowing tribal operators to sue licensed cardrooms to see if they fall within state law. However, Superior Court Judge Lauri Damrell dismissed a case in October, noting that federal law covers tribal-related gambling.
“[The court] recognizes the genuine desire, shared by many stakeholders, including the California Legislature, to reach the merits and achieve a final resolution,” Damrell noted. “The court does not take lightly the importance of the issues at stake and, were it within its authority to provide a definitive resolution, it would endeavor to do so.”
The changes could have an impact on poker in the state as well. Most of the major cardrooms – such as the Bicycle, Commerce, Bay 101, and Gardens – are also the state’s major poker venues. While some use “casino” in their names, they are actually cardrooms.
