California Card Rooms Secure Victory as Court Rejects Blackjack and Player-Dealer Regulations
2026-06-30
Source: iGaming Business
A California Superior Court judge has ruled in favor of state card rooms, striking down new regulations by the Bureau of Gambling Control concerning blackjack-style games and player-dealer rules, finding the agency exceeded its authority. This decision provides significant relief to the card room industry, which had faced substantial revenue losses under the proposed changes, while the Attorney General's office reviews its options.
California card rooms have achieved a significant legal triumph, as a San Francisco Superior Court judge invalidated two sets of regulatory changes impacting blackjack-style games and player-dealer operations. The ruling, issued by Judge Richard Darwin, found that the state's Bureau of Gambling Control (BGC) exceeded its statutory authority in issuing the directives, which were slated to become effective on April 1.
The regulations would have imposed substantial modifications on card room operations. For blackjack-style games, the rules mandated the removal of the 'bust' mechanic and the target score of 21. Regarding player-dealers, the changes included requirements for mandatory rotations every 40 minutes and that the position be offered to all players before each hand. The card room industry had warned these changes would severely impact revenue, with state analyses projecting a roughly 50% decrease in blackjack-related income and potential closures for some establishments.
Judge Darwin reiterated sentiments from a preliminary injunction hearing in May, ultimately concluding, "I find that in issuing the subject regulations, the Bureau acted in excess of the authority granted to it by the legislature and the Gambling Control Act." Attorneys for the card rooms, including Jeremy Kreisberg, successfully argued that the BGC's remit was for individual game approvals, not sweeping prohibitions on entire categories of games.
Industry stakeholders expressed considerable relief following the decision. Kyle Kirkland, president of the California Gaming Association and owner of Club One Casino, stated, "The reaction from the industry and our members is relief. We felt like we were on the right side of the law and the argument." Meanwhile, the Attorney General's office, representing the state, conveyed its disappointment with the ruling and indicated it is evaluating its options for an appropriate response. A follow-up administrative conference is scheduled for July 10.
This legal battle highlights ongoing tensions within California's gaming landscape, particularly between card rooms and the state's powerful tribal casino operators. While tribes were not direct parties in this particular litigation, they have historically contended that certain card room games infringe upon their exclusive Class III gaming rights. Attorney General Rob Bonta, currently campaigning for re-election, has been notably active in various gaming matters across the state, including this case and others related to prediction markets and daily fantasy sports.