SAN FRANCISCO — A San Francisco judge has temporarily blocked enforcement of new California cardroom regulations proposed by Attorney General Rob Bonta, ruling that the state likely exceeded its authority while adopting the rules.
San Francisco Superior Court Judge Richard Darwin on Thursday granted a preliminary injunction halting enforcement of the regulations while a lawsuit filed by the California Gaming Association proceeds.
The regulations, proposed earlier this year by the state Bureau of Gambling Control, would ban blackjack-style games and impose new restrictions on “player-dealer” games operated at California cardrooms.
In his ruling, Darwin found there was “clear and convincing evidence” that enforcement of the regulations could cause irreparable harm to cardrooms and the communities that rely on their tax revenue, according to court filings and statements released by the association.
The California Gaming Association argues the rules would threaten thousands of jobs and significantly reduce local tax revenue used to support police, fire protection, parks and youth programs.
“Today’s ruling validates what we have said all along: Attorney General Bonta and the Bureau of Gambling Control exceeded their authority by attempting to rewrite California gaming law,” association President Kyle Kirkland said in a statement.
Kirkland said the regulations were pushed by tribal gaming interests seeking to eliminate competition from cardrooms, which have long operated player-banked table games under prior interpretations of state law.
California tribal casinos and cardrooms have spent nearly two decades disputing the legality of “banked games,” including blackjack and baccarat-style games that state law reserves for tribal casinos. Cardrooms have continued operating variations of those games through third-party player-dealer systems, including “California Blackjack” and “Blackjack 21.5.”
The Attorney General’s Office proposed regulations sought to outlaw many of those practices.
According to the state Department of Justice’s economic analysis, the regulations could have a “significant and adverse” economic impact on the cardroom industry over the next decade. The California Gaming Association said the rules could eliminate more than half of statewide cardroom revenue.
“Cardrooms have lawfully operated the games targeted by these regulations for decades,” Kirkland said. “Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians.”
The state AG’s Office did not immediately respond to requests for comment Thursday.
The next hearing in the case is scheduled for June 30.
