California Attorney General Rob Bonta’s proposed regulations on cardrooms have ignited fierce opposition from lawmakers, municipal leaders, and industry advocates. The draft rules impose strict limitations on Third‑Party Proposition Player Services (TPPPS) and blackjack-style games. Critics argue these changes threaten thousands of jobs and could severely reduce tax revenues that fund essential city services across the state.
The new rules would only allow seated players to act as player-dealers. TPPPS wouldn’t be able to settle bets unless they were actually in the player-dealer seat. Games would have to stop if the player-dealer role doesn’t rotate between at least two players every 40 minutes. Only one TPPPS rep would be allowed at each table. The state says it’s about clearer structure, but many see it as an unnecessary shake-up.
As these tighter rules are debated, some wonder if now is the right time. According to James Briscoe, more players are turning to online slot games from online casinos, drawn by the convenience, variety, and promos like free spins and no-deposit bonuses. These platforms are available around the clock, require no travel, and appeal to a growing number of players. If cardrooms become more restricted, more players may simply shift online due to their increasing appeal.
A Standardized Regulatory Impact Assessment (SRIA) commissioned by California’s Department of Justice paints a grim economic picture. The assessment predicts annual revenue losses for cardrooms between $396 million and $464 million, and estimates that 311–364 full-time positions could vanish each year over the next decade. That’s a total exceeding 3,600 jobs. The shift would simultaneously funnel $198 million to $232 million more toward tribal casinos.
Hawaiian Gardens Mayor Dandy De Paula voiced strong concern about the fact that cardrooms not only provide high‑quality jobs, but also make up over 78% of the city’s general fund from cardroom tax revenue. Similar alarm has been raised by officials in Commerce and Bell Gardens, where cardroom income constitutes roughly half of their general budgets. They warn the regulations could cripple municipal finances.
Rural and inland cities such as Fresno and Clovis have also sounded warnings. Their representatives caution that the new rules could strip their communities of millions in tax dollars, undermining local projects and services. Assemblyman David Tangipa of Clovis condemned the AG’s proposal as “a direct threat to good‑paying jobs” and urged a withdrawal of what he called “harmful and unnecessary regulations.”
The proposed restrictions also emerge amid longstanding tensions between California tribes and cardrooms. Tribal operators contend that many cardrooms have bypassed gaming compacts granting exclusivity over banked games to tribes. In a move highlighting these disputes, a coalition of tribes filed suit under the Tribal Nations Access to Justice Act in January. Legal proceedings are scheduled to resume in Sacramento County Superior Court on August 8.
For now, Bonta’s office says the regulations are still a draft. They’re reviewing public feedback and haven’t said when the final version might come. While the Attorney General hasn’t backed off, many hope changes will be made before anything is finalized.
With more hearings on the horizon, city leaders and industry workers are watching closely. If these changes go through as proposed, it could bring additional challenges for local governments, workers, and surrounding communities.
