California’s long-running fight over cardroom gaming entered a new phase this month after state officials approved a pair of closely contested gambling regulations.
The California Nations Indian Gaming Association quickly praised the decision, saying it gives the Department of Justice clearer authority to rein in practices tribes have argued for years violate state law.
“These regulations are an important step in combating unscrupulous and illegal gaming in California,” CNIGA Chairman James Siva said in a statement sent to ReadWrite. “The regulations further clarify that games and practices employed by commercial card rooms are indeed prohibited under California law. Running a business contrary to that law is an illicit business, period. We hope that Department of Justice will now enforce these regulations so California can ensure a well-regulated gaming industry that is safe for consumers.”
The Office of Administrative Law signed off on two rule packages from the DOJ. One tightens the rules around player-dealer rotation and the use of third-party proposition player providers, or TPPPPs. The other directly targets blackjack-style games that have become a major revenue driver inside many cardrooms.
What the new California cardroom rules mean for the industry
Under the regulations, cardrooms can no longer offer games that replicate the core mechanics of traditional blackjack, which includes games centered on reaching 21, using standard blackjack card values, or relying on familiar hit-or-stand decisions. Operators are also barred from using the names “blackjack” or “21” to market their games.
The player-dealer rules are equally specific. Before each hand, the player-dealer position must be offered to everyone at the table. If players decline, the role must rotate to at least two different individuals other than the TPPPP within a defined time period or the game must end. Only one TPPPP may operate at a table, and it may accept wagers only while actively serving as the player-dealer.
State officials say the changes are designed to preserve the legality of “player-banked” games and prevent cardrooms from drifting into house-banked casino gaming, which California law largely reserves for tribal casinos.
The economic stakes are substantial
According to the Department of Finance’s major regulations 2024 analysis, TPPPP revenue from cardrooms reached about $793 million in 2023, while total cardroom revenue was roughly $1.356 billion. Blackjack alone accounted for approximately $136 million. The wider cardroom ecosystem, including non-gaming activity, supports an estimated 18,000 jobs, generates about $730 million in wages and benefits, and contributes roughly $3 billion to the state’s overall economic activity.
The department examined alternatives, including delaying compliance by three years or eliminating cardroom gaming altogether. Regulators rejected both, calling the extension unsupported by data and the full shutdown hypothetical and extreme. The analysis projected that ending cardroom gambling would reduce California’s Gross State Product by more than $1.3 billion by 2035 and cost over 1,000 jobs.
The new rules take effect in April 2026, with compliance plans due in May.
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