(AsiaGameHub) –   California’s cardroom industry is confronting an existential crisis due to new regulations that took effect on April 1. The industry is seeking to reverse these rules, which essentially bar cardrooms from offering blackjack-style games—games that serve as the lifeblood of these venues and their surrounding local economies.

California’s New Cardroom Regulations Have Taken Effect

Earlier this year, California Attorney General Rob Bonta and the Bureau of Gambling Control approved far-reaching regulatory changes. Citing concerns about problem gambling, legislators effectively decided to prohibit cardrooms from providing the player-dealer blackjack games the industry has grown dependent on.

For context, California law forbids anyone except state tribes from offering banked gambling. As a result, cardrooms have long hired third-party player-dealers and created blackjack variants that align with the local regulatory framework. The use of third-party proposition player services (TPPPs) has become closely associated with cardrooms, which are major contributors to local economies.

Regarding player-dealers, the new rules do not completely ban the practice—though they require that player-dealers be rotated every 40 minutes.

The rules took effect on April 1, but cardrooms have until May 31 to submit their compliance plans. This means gaming operations will remain largely unchanged for a few months. However, industry representatives are worried about what lies ahead.

Cardrooms Have Taken Legal Action

California’s cardroom sector has firmly rejected the new regulations, claiming they would devastate not only the industry but also entire local economies. Several regions in California get a large portion of their tax revenue from the cardroom industry, meaning the new laws could have far broader impacts than intended.

Additionally, industry representatives argued the new laws would put thousands of jobs at risk. The industry currently employs many people, who are facing significant uncertainty due to the new rules.

In any case, the industry has refused to stand by as the new regulations take hold and has taken the issue to court, hoping to secure an injunction.

Meanwhile, tribal authorities appear pleased with the changes. Tribes have long believed cardrooms infringe on their exclusive right to offer gambling and have long protested the cardroom industry’s existence.

Representatives stated they were happy with the AG’s decision and expressed hope that California would properly enforce the new rules.