Justice Department Moves to End Card Room Blackjack Loophole in California

A new plan from California’s Department of Justice could reshape the state’s gambling scene by prohibiting card rooms from offering blackjack and similar table games. This move, which aims to tighten rules on “banked” games, has sparked strong opposition from local business owners and workers who claim it would destroy their industry.

Card Rooms Face Major Revenue Hit as State Cracks Down on Modified Banked Games

According to existing regulations, card rooms in California cannot offer banked games where players go head-to-head with the house. However, many places run tweaked versions of these games by naming a “player-banker,” hired through outside companies. The state’s Justice Department now claims these versions are blackjack in disguise and go against the law’s intent.

If it gets the green light, the new rule would stop these tweaked games in dozens of licensed card rooms, including well-known spots like Club One Casino and The 500 Club Casino near Fresno, reported The Fresno Bee. Tribal casinos, which follow different rules, would not be affected and could keep offering regular blackjack and other banked games.

Kyle Kirkland, who heads the California Gaming Association and owns Club One Casino, worried that tribal casino operators pushed for the proposal because they see card rooms as rivals. He pointed out that table games make up about half of his casino’s earnings, cautioning that this kind of loss would spell disaster for nearby businesses and their employees.

Cities Fear Budget Shortfalls as Card Room Ban Threatens Local Revenues

Industry supporters also point out the financial trouble for local governments. Many towns, like Fresno and Clovis, rely a lot on taxes from card rooms to pay for police, fire, programs for older residents, and community projects. A study of the whole state by Berkeley Economic Advising and Research figured the new rules could lead card rooms to lose $464 million each year, while tribal casinos might gain $232 million. This report also said more than 360 full-time jobs could disappear over the next ten years.

On Thursday, casino workers and their backers held a protest outside Attorney General Rob Bonta‘s Fresno office. They expressed worry about big job cuts and money problems if the new measure starts working.

Those backing the plan say it would clear up long-standing legal gray areas and bring back honesty to California’s gambling laws. However, those against it argue that card rooms are key to local economies and that getting rid of table games would hurt community stability.