UMVA has learned that a San Francisco Superior Court judge has dealt a significant blow to California Attorney General Rob Bonta’s proposed cardroom regulations, temporarily halting their implementation in a major victory for cardroom operators.
The regulations, which would have effectively outlawed popular blackjack-style games and other offerings, have been frozen by a preliminary injunction issued by Judge Richard Darwin. This move comes as the California Gaming Association’s lawsuit against the regulations continues to make its way through the courts.
According to information obtained by UMVA, the judge found that the Bureau of Gambling Control likely exceeded its authority by approving the rules. Furthermore, the judge cited “clear and convincing evidence” that enforcing the regulations would cause serious and irreversible damage to both gambling businesses and the cities that rely heavily on their tax revenue.
This development marks a critical juncture in one of California’s most significant gambling disputes. Tribal casinos and licensed cardrooms have been locked in a heated battle over the limits of state gaming law, with tribal groups backing the proposed regulations and cardroom operators fiercely opposing them.
Cardroom operators argue that the proposed rules would dramatically reshape the industry by removing blackjack-style games and placing tighter restrictions on longstanding table games already monitored by state regulators. The economic implications are severe, with the attorney general’s own review projecting losses exceeding half of statewide cardroom revenue if the regulations were enforced.
Industry representatives warn that these losses could trigger widespread layoffs and reduce local funding tied to gaming taxes. Cities across California depend on cardroom revenue to support essential public services, including police departments, fire services, parks, and youth programs.
The California Gaming Association has been vocal in its opposition to the regulations, stating that labor groups, local officials, and city governments repeatedly warned regulators about the economic fallout before the rules were finalized. The organization also notes that over 1,700 public comments opposing the changes were submitted during the rulemaking process.
Kyle Kirkland, president of the California Gaming Association, welcomed the ruling, stating that it validates the association’s claims that Attorney General Bonta and the Bureau of Gambling Control exceeded their authority. Kirkland emphasized that the regulations threaten local economies, public safety funding, and the livelihoods of thousands of Californians.
The association views the ruling as an important step towards preventing severe and unnecessary harm to cities, workers, and small businesses that depend on the cardroom industry. As the lawsuit continues, the future of California’s cardroom industry hangs in the balance.
