California Court Strikes Down Cardroom Blackjack Regulations, Dealing Blow to Attorney General

A San Francisco Superior Court judge has struck down new California gambling regulations that would have gutted blackjack-style games at licensed cardrooms statewide, ruling the state’s Bureau of Gambling Control exceeded its legal authority. Judge Richard Darwin’s June 30 decision sided with the California Gaming Association, which had sued to block the rules before they could take effect.

The regulations, unveiled by Attorney General Rob Bonta’s office in February, targeted how California cardrooms run games that resemble house-banked casino blackjack. Because tribal gaming compacts reserve house-banked games exclusively for California’s tribal casinos, cardrooms instead use state-licensed third-party proposition player services to supply players who rotate into the dealer position at each table.

Rules That Never Took Effect

Had they gone through, the regulations would have forced player-dealer positions to rotate away from a table every 40 minutes, at which point the game would have to end and all cards and wagers would need to be cleared. The rules also would have eliminated traditional blackjack scoring — no more automatic win for hitting 21 — replacing it with a system where the winner is whichever remaining player’s point total comes closest to beating the player-dealer’s hand without going over.

The rules were originally set to launch April 1, but the San Francisco Superior Court issued a preliminary injunction that froze them while litigation played out. Darwin’s ultimate ruling was unambiguous: “the bureau did not have the authority to issue statewide regulations.”

An Ongoing Turf War

A spokesperson for Bonta’s office said the attorney general is “disappointed in the ruling” and reviewing next steps, though it is not yet clear whether the state will appeal. The decision is the latest chapter in a long-running battle between California’s cardroom industry and tribal gaming interests, who have repeatedly challenged the legality of player-dealer games in courts and the legislature. For now, cardrooms can continue operating as they have, preserving a business model that generates significant local tax revenue in cities across the state.