San Francisco judge blocks California cardroom gambling rules statewide
A San Francisco judge froze state cardroom rules that would have hit blackjack-style games, 23,000 jobs and more than $300 million in annual tax revenue.
San Francisco Superior Court Judge Richard Darwin struck down California’s new cardroom rules on June 30. His final ruling left the injunction in place statewide and said the California Bureau of Gambling Control had exceeded its authority.
The rules had cleared the Office of Administrative Law on Feb. 6 and were scheduled to take effect April 1. They targeted blackjack-style games and the rotating player-dealer system cardrooms use under California’s long-running model of third-party proposition player services, a setup that has drawn repeated pressure from tribal gaming interests seeking tighter limits.
Darwin had already moved once before the final ruling. On May 21, he issued a preliminary injunction in consolidated San Francisco Superior Court cases brought by the California Gaming Association and related cardroom interests. The court order barred enforcement, implementation or effect of the regulations for 45 days while the litigation proceeded.
The California Gaming Association counts 72 cardrooms, employs more than 23,000 people and generates more than $300 million a year in federal, state and local tax revenue. Cardroom advocates warned the rules would have hit local budgets that rely on gambling taxes for public safety and other city services, including police, fire protection, parks and youth programs.
The Department of Justice’s own economic analysis projected at least $600 million in regulatory impact over 10 years. The new limits would have barred traditional blackjack mechanics and restricted how third-party player-dealers operate, a change cardroom operators said would have crippled their business model.
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