The California Gaming Association (CGA) has filed a high-stakes lawsuit against the state’s Department of Justice (DOJ) to stop new regulations set to take effect this year.
The rules, approved by the Office of Administrative Law, include a ban on traditional blackjack and stricter rotations of the player-dealer position, which card rooms claim will trigger mass layoffs.
Economic Fallout and Public Services
Card rooms across California rely on blackjack for the majority of their revenue. In San Jose, city officials estimate that the new rules could cause $32 million in annual tax revenue to disappear. This funding currently supports 95 police officers, 106 firefighters, and critical 911 dispatch services.
Rob Lindo, Vice President of Casino M8trix, warned of the human cost:
“Ninety-three percent of our employees are people of color, 50% of them are women… By putting 50% of our employees out of work, I don’t know how the Attorney General is meeting his objectives of protecting vulnerable populations.”
Seeking a Judicial Pause
The CGA is seeking an injunction before the May 31 deadline, when card rooms must submit their compliance plans. While the regulations officially began on April 1, a “grace period” means players won’t see changes until the fall. Councilmember Michael Mulcahy noted the “unintended consequences” of the AG’s shift, arguing it may harm the very communities it aims to protect.
