California gamblers will still be allowed to play blackjack, at least for the time being.
A San Francisco Superior Court judge issued a preliminary injunction in a lawsuit filed by cardrooms against California Attorney General Rob Bonta’s new regulations that would effectively ban blackjack in the state.
The backstory: Last year, Bonta’s office proposed two regulations for cardrooms to effectively eliminate blackjack-style games and change the rules governing the role of player-dealers.
- The California Gaming Association filed separate lawsuits against both of those rules.
- The blackjack-specific rule would allow cardrooms to only allow blackjack-style games if the rules do not have a “bust feature” and do not have a target point count that equals 21.
- The other regulation would require the player-dealer position to only be occupied by a person seated at the table. Cardrooms currently use Third-Party Provider of Proposition Player Services (TPPPS) – often called “props” – to act as the house.
The big picture: San Francisco Superior Court Judge Richard Darwin issued the preliminary injunction on the new rules while the lawsuit proceeds.
- Darwin ruled that the Bureau of Gambling Control likely exceeded its authority by adopting regulations that are effectively statewide bans.
Why it matters: Bonta’s office reported in its own analysis of the regulations last year that TPPPS revenues would decline by around 50%, putting millions of tax dollars at risk that many cities throughout the state benefit from.
- Bonta’s office also found that a quarter of cardroom patrons would go to tribal casinos instead in order to avoid the player-dealer rotation requirement.
- According to the analysis, cardrooms would lose $396 million under the new rules, with tribes gaining $198 million in turn.
What we’re watching: The new regulations were set to take effect on June 1.
- With the preliminary injunction set to expire on July 5, Darwin scheduled another hearing in the case for Jun 30.
What they’re saying: Kyle Kirkland, the President of the California Gaming Association and the owner of Fresno’s Club One Casino, said Bonta’s office exceeded its authority by attempting to rewrite California law.
- “These regulations were driven by pressure from powerful tribal gaming interests that have long sought to eliminate lawful competition from California’s cardrooms,” Kirkland said. “Cardrooms have lawfully operated the games targeted by these regulations for decades. Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians.
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