California Cardrooms File Lawsuit Against Bonta’s Blackjack Ban

California cardroom associations have initiated legal action against state Attorney General Rob Bonta over his recent ban on blackjack and alterations to other card games. The lawsuit, filed on a Friday, claims that Bonta’s decisions represent an “unprecedented power grab.”

According to the associations, these card games have been legally played for decades, under the oversight of multiple attorneys general. Kyle Kirkland, president of the California Gaming Association and owner of Club One Casino in Fresno, criticized the ban, stating, “These games have operated legally for decades… yet one public official is now moving to shut them down without identifying a single public safety concern.”

Beginning on April 1, 2024, Bonta’s interpretation of a 19th-century state law will render blackjack illegal in California cardrooms. Additionally, the Department of Justice has implemented regulations that restrict how cardrooms conduct other player-dealer games.

The California Gaming Association, the California Cardroom Alliance, and the Communities for California Cardrooms assert that Bonta’s decisions could severely damage their businesses and municipal tax revenues. The lawsuit aims to overturn these regulations, which they argue will lead to significant job losses and financial shortfalls in cities that rely on cardroom revenue.

Kirkland expressed concern about the economic implications, stating that the regulations threaten to eliminate more than half of California’s cardroom jobs. He added, “These games… are a critical source of revenue for dozens of cities.” The lawsuit emphasizes that blackjack has been sanctioned for play under six different attorneys general prior to Bonta’s latest decision.

The lawsuit further claims that the Department of Justice’s regulations are baseless and were adopted despite substantial opposition from local governments, workers, and the cardroom industry. Reports indicate that tribal communities have significantly supported Bonta, contributing at least $101,500 from 2023 to summer 2024 to his campaign.

Losing blackjack could potentially cut at least 50% of cardroom jobs and revenue, which would force many establishments to shut their doors. The California Department of Justice estimates that the 86 licensed cardrooms throughout the state could collectively incur losses of $396 million. Furthermore, it is projected that 25% of the revenue would shift to Indian gaming casinos, which are not subject to the new regulations.

The cardroom industry employs approximately 18,000 people statewide, generating $730 million in wages and benefits, and contributing about $3 billion to the overall economy. For instance, Club One Casino alone contributes nearly $1 million annually to Fresno’s general fund, which typically supports programs for seniors, youth, and public safety.

In a letter addressed to Bonta, the city of San Jose highlighted that the revenue from cardrooms is crucial for funding police, fire, and emergency services. In response to anticipated financial losses, the city of Commerce plans to place a 1/4-cent sales tax measure on the ballot in June.

As this legal battle unfolds, the implications of Bonta’s regulations could reverberate throughout California’s gaming landscape, impacting jobs, local economies, and the future of cardroom operations in the state.