What would happen if California Attorney General approves certain regulations on casinos

There is a strong opposition to California’s Attorney General Rob Bonta’s proposed regulations that intend to stop illegal gambling activities, fearing it could lead to the loss of jobs and revenue for up to 50% in casinos and cardrooms across the state. 

In Los Angeles County, casinos located in Commerce, Compton, Bell Gardens, Hawaiian Gardens, Gardena and Inglewood could lose more than 5,000 jobs, according to the state’s Department of Justice Standardized Regulatory Impact Assessment Summary (SRIA). While the benefits include improved compliance with gambling restriction laws and reduction in problem gambling, there will be an indirect cost with the associated attractions or services such as hotels, restaurants and bars.The Bureau of Gambling Control intends to promote two sets of regulations, one concerning Rotation of the Player-Dealer Position in California gambling establishments. This would clarify the role of the player-dealer position so that games will be played in compliance with the law. 

The second one would clarify which elements of cardroom games sufficiently differentiate them from twenty-one–or Blackjack–which is prohibited by statute in California. All cardrooms in the state would be subject to these proposed regulations. 

However, the casino industry questions if Bonta is overstepping his authority as the regulations focus on games that have been played legally for decades. 

Juan Garza, the executive director of the California Cities for Self-Reliance Joint Power Authority (JPA), said there are no benefits but harm with these proposed regulations.

“We're going to lose 50% of our revenues coming in. These cities are underrepresented communities, mostly communities of color, whether it's Black or Brown. Historically, they've been disadvantaged,” said Garza. “It’s frankly, unthinkable that a regulator would think that these are fair regulations without knowing the true impacts.”

The JPA is a public agency that represents cardroom cities in L.A. County,

In California there are 86 licensed cardrooms, with 65 operating before the COVID-19 pandemic. In addition, there are 36 active third-party providers of proposition player services (TPPPPS) in the state. 

The Blackjack regulations would eliminate all Blackjack revenue from cardrooms with 50% of that lost revenue replaced with new games, and 25% of that lost revenue could be diverted to tribal casinos, according to the assessment. 

The SRIA also indicates that elimination of all Blackjack revenue from cardrooms with replacement of 50% of revenue from new games could represent a $68 million cost to cardrooms while 25% Blackjack substitution to tribal casinos could represent a $34 million benefit to tribal casinos.

Garza said SRIA has flawed information and in 2023 the JPA submitted comments encouraging economic impacts but the results are not sustainable and weren’t done right. 

Bonta’s background with the casinos

Garza said casinos are disappointed with Bonta, not necessarily with the past support but because he's embarking on a process that's going to fundamentally devastate these communities.

“And it's being done with no clear and credible information, that's why we're disappointed. We expect more of the Attorney General than to base decisions on flawed information,” said Garza.

In 2021 Bonta accepted a $16,200 campaign donation from the Bicycle Casino in Bell Gardens, right after he was appointed attorney general by California Governor Gavin Newsom. That same year, the California Bureau of Gambling Control, a department under Bonta’s jurisdiction, along with the Internal Revenue Service (IRS) and the Department of Homeland Security (DHS) were investigating the casino for violating anti-money-laundering laws, according to the San Francisco Chronicle. 

Bonta won reelection in 2022 and in 2024 hedropped the charges after the IRS and DHS fined the casino with a $500,000 fine. That same year the Bicycle Casino was purchased by the group Parkwest Casinos, which owns six casinos statewide.

Garza said when these issues have arisen, the industry has addressed them.

“The rules exist to be able to catch these anomalies when they happen, and every single time they've happened, it's been found that they are one time incidents,” he said. 

People can voice their concerns

Currently, the rulemaking process is undergoing a new 45-day public comment period, which ends May 29, 2025 at 5 p.m. People can submit written comments regarding these regulations and they will be responded to by the Department staff. 

There will also be two hearings on the proposed regulations. People can 

present statements or comments orally or in writing. The hearing on Rotation of Player-Dealer Position will be held Wednesday, May 28, 2025, 9 a.m. The Blackjack-Style Games hearing will be Thursday, May 29, 2025, 9 a.m. All the information can be found on the Attorney General’s website