California cardrooms have welcomed a recent court decision that allows them to continue offering blackjack, a key source of revenue for the industry. On June 30, San Francisco Superior Court Judge Richard Darwin ruled against new state regulations that would have prohibited cardrooms from offering blackjack and other banked games, a move that cardroom operators say would have had severe economic consequences.

The regulations, introduced by the California Department of Justice in May 2025 and approved by the California Office of Administrative Law in February, sought to close what regulators viewed as a legal loophole. Under current practice, cardrooms allow players to take turns acting as dealers, often through designated third-party businesses, thereby circumventing bans that restrict banked games like blackjack to Native American casinos. The new rules aimed to curtail the use of these third-party dealers and tighten restrictions on player-dealers. However, Judge Darwin found that Attorney General Rob Bonta and the California Bureau of Gambling Control exceeded their legal authority in implementing these regulations.

The California Gaming Association (CGA), which represents more than 70 cardrooms statewide supporting around 20,000 jobs, quickly filed suit to block the rules. The CGA argued that the regulations would have jeopardized thousands of jobs and substantially reduced the industry’s positive economic impact. According to a 2019 analysis commissioned by the CGA, California cardrooms generate approximately $500 million in annual tax revenue. Kyle Kirkland, president of the CGA and owner of Club One Casino in Fullerton, highlighted the potential impact on local governments and communities that rely on this revenue.

“We give the city of Fresno a million dollars a year in table tax revenue, and they were actively asking me how they could budget for this going forward,” Kirkland said. He added that about 60% of Club One’s revenue comes from blackjack, and that the regulation would have forced him to lay off nearly 200 of the casino’s 250 employees.

Beyond Fresno, cardrooms in Los Angeles County alone contribute over $2 billion in economic activity and sustain more than 9,000 jobs. The ruling brought relief to cities such as Bell Gardens and Hawaiian Gardens, where casino revenues constitute nearly 70% of the general fund. The Commerce Casino, which accounts for 40% of the City of Commerce’s general fund and employs 2,200 people, faced significant challenges when the rules were initially approved. Commerce Mayor Kevin Lainez described the city as “devastated,” citing the need to declare a fiscal emergency and introduce higher sales taxes. Public service cuts to senior programs, public safety, and infrastructure were anticipated as potential consequences.

The new regulations would not have affected Native American casinos, which are authorized under Proposition 1A, passed by voters in 2000, to offer Nevada-style banked card games on reservations.

While Judge Darwin’s ruling currently prevents the state from imposing the regulations, the California Gaming Association expects that the Justice Department will appeal. Kirkland characterized the decision as a “strong and resounding victory” but expressed concern about the Attorney General’s approach to regulating cardrooms going forward, indicating that the dispute over the legality and future of cardroom blackjack operations is likely to continue.