California Cardrooms File Lawsuits Over New Gambling Rules

Two lawsuits filed in San Francisco Superior Court challenge new gambling regulations approved by Attorney General Rob Bonta. Cardroom operators say the rules could cut jobs and reduce revenue for cities that depend on gambling activity.

Good to Know

• California Gaming Association filed two lawsuits against new gambling regulations.
• Industry warns rules could remove at least 50% of cardroom jobs and revenue.
• Regulations could begin taking effect on April 1, 2026.

The lawsuits come from the California Gaming Association with support from the California Cardroom Alliance and Communities for California Cardrooms. Legal filings aim to block rules issued by the Bureau of Gambling Control under the California Department of Justice.

Proposed regulations would remove blackjack style games and restrict player dealer games inside cardrooms.

Industry leaders say those games have operated for decades under previous legal interpretations from past Attorneys General.

According to the Attorney General Standardized Regulatory Impact Assessment, the rules could remove at least half of cardroom revenue and employment. Operators warn such losses could push many venues toward closure.

If courts do not intervene, regulators plan to begin implementing the rules on April 1, 2026. Changes affecting games could start as early as June.

Industry groups argue the policy represents an expansion of authority beyond existing state law governing cardroom operations.

Operators also say the rules reverse long standing interpretations followed under prior Attorneys General, including Jerry Brown and Kamala Harris.

Kyle Kirkland, President of the California Gaming Association, said:

“Attorney General Bonta’s regulations threaten to eliminate more than half of California’s cardroom jobs and wipe out a critical source of revenue for dozens of cities. These games have operated legally for decades under multiple Attorneys General, yet one public official is now moving to shut them down without identifying a single public safety concern or addressing the 1,764 public comments about these regulations.

“Our industry repeatedly raised legal and economic concerns throughout the rulemaking process, but the Attorney General refused to engage with the communities and working families who will be harmed. We are asking the court to stop these unlawful regulations before they wipe out thousands of jobs and put many local economies into fiscal distress across California.”

Industry groups also point to strong opposition during the rulemaking process. The Department of Justice finalized the regulations on February 9 after receiving 1,764 public comments. Many submissions questioned legal authority and warned about economic consequences.

Local governments have also raised concerns about potential revenue loss.

Officials in San Jose said cardroom income supports funding for police, fire departments, and 9-1-1 emergency services.

The City of Commerce has already placed a quarter cent sales tax proposal on the June 2026 ballot to help offset potential losses. Other municipalities are reviewing similar measures if the regulations proceed.

The post California Cardrooms File Lawsuits Over New Gambling Rules appeared first on iGaming.org.