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State of Play’s TL;DR
- New California DOJ rules targeting blackjack-style and player-dealer games have prompted two cities to seek a sales tax hike to plug a looming budget gap.
- The change threatens cardroom revenue that many municipalities rely on.
California’s Department of Justice, under Attorney General Rob Bonta, approved new regulations aimed at blackjack and player-dealer games. The rules are set to take effect April 1.
City leaders in Commerce and Bell Gardens say the changes have prompted emergency meetings and declarations of fiscal emergency. Officials cite the DOJ’s own fiscal analysis projecting up to a 50% loss of jobs and revenue for the cardroom industry.
Commerce City Manager Ernie Hernandez and Commerce Mayor Kevin Lainez warned the cuts would erode funding for infrastructure, public safety, and community programs. Bell Gardens City Manager Michael O’Kelly said cardroom taxes generate over $17 million annually, more than 40% of the city’s general fund.
Both cities have placed a sales tax measure on the June ballot to offset the potential shortfall.
Cities may have to cut services
The new rules will undoubtingly result in reduced availability of familiar table games in California cardrooms. Some titles may be removed or heavily modified. That would push demand toward alternative venues – including tribal casinos, commercial cardrooms that can adapt, or online operators – though outcomes will vary by market and regulation.
Operators face a direct financial hit from lost game offerings and potential declines in foot traffic, which in turn risks layoffs and lower municipal tax receipts.
Municipalities that rely on cardroom taxes for policing, parks, and senior and youth programs may seek new revenue streams (like the proposed sales tax hikes) or cut services if voters reject measures.
Industry groups and supporters of the rule – such as the California Nations Indian Gaming Association – argue the changes crack down on illegal gaming, but city leaders emphasize the broader economic fallout for local budgets and jobs.
Based on reporting by Niku Kazori for KABC7.
