In a landmark move poised to transform California's cardroom industry, the California Department of Justice (DOJ) under Attorney General Rob Bonta has finalized new regulations.
These changes, rooted in the enforcement of existing state laws, directly address the long-controversial use of player-dealer systems in non-tribal state-licensed gambling venues.
This decision comes on the heels of a ruling by Sacramento judge Lauri Damrell.
She ruled against a lawsuit from gaming tribes that claimed cardrooms shouldn't be allowed to offer these games. The judge determined that federal law, specifically the Indian Gaming Regulatory Act (IGRA), outweighs the state law claims made by the tribes.
To help put things in perspective, let's take a look at what has been at the epicenter of this fight, which has been going on for years, and how the new regulations are expected to help.
How California Cardrooms Have Been Operating
California Penal Code § 330 and related statutes prohibit traditional banked games such as blackjack or baccarat, which are only allowed on tribal lands under specific compacts.
To navigate this, cardrooms have employed player-dealer systems whereby a rotating "player-dealer" (often a representative from Third-Party Proposition Player Services, or TPPPPS) acts as the bank.
This entails playing games similar to traditional blackjack but technically adhering to the rules of being player-banked.
New Regulations: Key Changes
The newly introduced regulations, approved on February 6, 2026, and effective from April 1, 2026, aim to strictly enforce these legal distinctions. Here are the major changes:
Player-Dealer Rotation:
- The role must be systematically rotated among players and TPPPPS to ensure true rotation.
- Before each hand, the player-dealer position must be offered to players seated at the table.
- TPPPPS can no longer dominate the role indefinitely, and only one TPPPPS is allowed per table.
Blackjack-Style Games:
- Games must be clearly distinct from prohibited "twenty-one" or blackjack.
- Eliminating the "bust" rule and automatic wins for natural blackjacks to avoid likeness with traditional blackjack.
- Prohibiting game names from including "21" or "blackjack."
Cardrooms have until May 31, 2026, to submit plans to align their rules with these changes.
Controversy and Industry Impact
These changes have sparked significant controversy.
Cardroom owners warn of devastating impacts on the industry.
Local governments, workers, and operators fear job losses in the thousands, alongside revenue declines totaling hundreds of millions annually. Protests outside the Attorney General's office in 2025 underscore the tension.
A state impact assessment predicts annual cardroom revenue losses of $464 million, with tribal casinos potentially gaining $232 million. Native American tribes support the regulations, viewing them as necessary to enforce their exclusive rights to house-banked games and close long-standing loopholes.
What’s Next for Cardrooms in California?
Cardrooms will likely pivot toward more traditional player-versus-player games, such as poker. You can also expect them to restructure their table game offerings to comply with the new regulations.
While some may pursue legal challenges, the April 2026 implementation is imminent. Regular patrons should prepare for noticeable changes in available games by mid-2026.
These changes emerge amidst a complex landscape of regulatory enforcement rather than legislative alteration, reflecting broader tensions between cardrooms and tribal entities in California's gaming industry.
As the April deadline approaches, all eyes will be on how cardrooms adapt to this evolving regulatory environment.
