California cardroom owners reached a $43.3 million settlement with state gaming regulators to settle a class-action lawsuit alleging regulatory fees were collected in excess of what was allowed. Former prop players are eligible for a piece of that settlement.
Plaintiffs in the case reached an agreement with the state’s Gambling Control Commission (GCC) and Bureau of Gambling Control after the case was reviewed by a state appeals court.
Prop players are employed by cardrooms to help keep games running, allowing properties to continue collecting a rake. Props are generally paid an hourly rate and get to keep any winnings. However, prop players must play the games management selects.
As the game’s popularity surged during the 2000s, the role became less important and most rooms eliminated the position. California was the last major market to employ prop players.
The California settlement affects prop players and cardroom owners from Jan. 1, 2005, to May 12, 2020. The agreement followed fees incurred by cardrooms and prop bettors during that time.
Appellate Court Reaffirms Earlier Ruling
The suit alleged that the GCC imposed additional conditions on a renewal of the plaintiffs’ license renewal, which included prop players from Lucky Chances Inc. and others. Violations included a 14-day suspension and financial penalties. Those involved later sued and argued the fees were inappropriate.
A trial court later ordered the commission to reconsider the penalty, limiting the amount to $20,000 per violation. The licensees appealed, noting that the penalty was unauthorized under state law. The commission also appealed, alleging the court’s reading of state regulations was wrong.
The appellate court has now reaffirmed the lower court ruling that the commission was unauthorized to impose the fines and that the licensees didn’t violate any relevant law, regulation, or license condition.
The ruling said that “the majority concludes that the California Gambling Control Commission can impose discipline here, but not the discipline outlined in the regulation that lists the commission’s disciplinary options.”
A final approval hearing in the case is set for Dec. 4. Those affected have 60 days from the final settlement to make a claim. Exact payout amounts have yet to be determined.
Prop Players To Poker Commentators
Poker players and commentators Bart Hanson and David Tuchman worked as props early in their careers. Hanson spoke about the setup in a Beyond Ordinary podcast in 2024. The role eventually led to one of Tuchman’s first jobs as a commentator.
“At that time, I got hired as a prop player, and then literally, it was probably one of the first regular live-streams of any kind, started at this casino in 2005. It was a poker live-stream. I volunteered (to commentate) because I knew they were doing this … and I have a communications (degree), I love poker, and I want to be a commentator for this.’
Both landed the job and went on to work the games for two years. Hanson said the job not only helped him as a broadcaster but also as a poker player.
Other poker pros who have worked as prop players include Ted Forrest, Mike Matusow, and Chris Ferguson.
Cardroom Battles Continue
The prop player settlement comes amid an ongoing legal battle between cardrooms and the Bureau of Gambling Control, which issued changes to blackjack games in February that would be allowed in the state. Some of those include not being allowed to use the words “blackjack” or “21” in game titles.
Other changes included no automatic wins if dealt 21 and players could no longer “bust.” There were also significant changes to third-party backing of the games.
The California Gaming Association (CGA) alleged that the changes could have a massive negative impact to the state’s 75 legal cardrooms and filed a lawsuit in April to rescind the new rules.
The state’s Department of Justice has estimated the new rules could cost cardrooms $68 million in revenue while adding $34 million to tribal casinos in the state. The CGA believes the new rules would eliminate 50% of cardroom jobs.
The CGA was granted a 45-day temporary restraining order in May with another hearing set for June 30.
A Years-Long Dispute
The changes would greatly impact the state’s poker scene. Major cardrooms like Commerce Casino, Bicycle Casino, and others have hosted major series through the years.
Tribal leaders in the state have argued for years that cardrooms infringe on their exclusivity to casino games in the state and have hailed the new rules.
“The cardrooms … felt like they were operating appropriately because no one was enforcing it against them,” said Nick Bryson, attorney for the Shingle Springs Band of Miwok Indians.
“I’m pleased the attorney general has made clear his rules, and I hope he’ll enforce them now.”
