California is set to implement new gambling regulations that could reshape the state’s card rooms and game halls, including popular venues in Sacramento such as Limelight Bar, Café & Cardroom, and Capitol Casinos.
Under the latest state legislation, businesses are prohibited from offering “banked” games—like traditional blackjack and baccarat—where players compete against the house. These games remain exclusive to tribal lands. To adapt, card rooms have long relied on “player-dealers,” hired through third parties, who facilitate alternatives such as “California Black” or “Blackjack 21.5.” Critics argue these games closely mimic the originals, sparking complaints from tribal casino operators that they undermine exclusivity agreements.
New rule proposals and approval
The new proposals, submitted by Attorney General Rob Bonta and the Bureau of Gambling Control (BGC) and approved by the Office of Administrative Law, would roll back permitted games and impose stricter limits on the player-dealer model.
The Bureau of Gambling Control (BGC) is under the jurisdiction of the California Department of Justice. Its responsibilities include regulating state gambling to ensure it remains honest, competitive, and free from criminal influence, conducting extensive background checks on license applicants and inspecting card rooms, reviewing gambling equipment and establishment records.
In addition, the Bureau examines the physical locations where gambling takes place to verify compliance with state law. It regularly investigates suspected violations of gambling regulations and performs audits and reviews to assess fiscal and operational compliance with Tribal-State Gaming Compacts.
Industry pushback and economic concerns
Industry leaders warn of severe consequences. Chief Counsel for Stones Gambling Hall Heather Guerena was quoted on the local media outlet, The Sacramento Bee, that the rules could cut down 40 percent of the venue’s revenue. She said she submitted more than 150 pages of legal arguments to regulators, but received no substantive response.
According to the California Gaming Association (CGA), the state’s card room industry generates more than $2 billion annually while contributing millions in tax revenue to both local communities and the state. Collectively, card rooms also produce over $300 million in federal, state, and local taxes each year. In several communities, they stand as the largest taxpayers, with locally-owned card rooms providing the bulk of general fund revenue.
Additionally, card rooms employ more than 23,000 people statewide, as noted by CGA. Many come from underserved communities and provide stable, living-wage jobs.
A longstanding dispute with tribal casinos
The dispute between card rooms and tribal casinos has simmered for nearly two decades. A 2024 Senate Rules Committee analysis traced the conflict back to 2007, citing regulatory opinion letters and enforcement actions that left the issue unresolved.
CGA President Kyle Kirkland is featured in a recent news clip warning that new regulations advanced by Attorney General Rob Bonta threaten California cardrooms and the communities that rely on them. Cardrooms support thousands of local jobs and generate critical revenue that…
— CA Gaming Association (@CACardRooms) February 9, 2026
What Comes Next for Card Rooms
The Bureau of Gambling Control is expected to report by 31 May 2026 on how card rooms must alter their gameplay. Kyle Kirkland, president of the CGA, called the changes “extreme,” alleging that regulators failed to follow proper procedures for public disclosure and input. He said the industry plans to pursue legal remedies to protect businesses, workers, and communities that rely on card rooms, accusing officials of dismissing them as politically negligible.
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