On October 20, a significant protest unfolded outside the office of California’s Attorney General in downtown Los Angeles, marking a recent chapter in the longstanding conflict between state tribes and card rooms. Around 150 card room employees, city officials, and labor organizers gathered to voice their opposition to proposed regulatory changes concerning blackjack-style games and player-dealers, which, if enacted, could drastically impact the revenue and growth of the card room sector.
The protest, characterized by a Monopoly board game theme, featured a “Monopoly man” mascot distributing fake money with Attorney General Rob Bonta’s face, accompanied by slogans accusing him of supporting tribal monopolies at the expense of communities. Participants, armed with picket signs and megaphones, chanted slogans like “fight for our jobs” and “save our cities,” with the demonstration lasting approximately an hour.
Elected officials from cities heavily reliant on card room revenues, such as Hawaiian Gardens, Compton, Commerce, and Bell Gardens, spoke against the proposed regulations. For instance, Bell Gardens relies on its card room for over 40% of its general fund, while Hawaiian Gardens depends on it for up to 70% in certain years. Councilwoman Francis de Leon Sanchez warned that the regulations would severely impact her city’s services and residents.
“A lot of jobs are going to be lost,” Sanchez expressed, highlighting the potential devastation for her hardworking Latino community, many of whom are employed by the casino. She stressed that residents would need to find alternative income sources if the regulations were implemented.
The California Nations Indian Gaming Association (CNIGA) and the Viejas Band of Kumeyaay Indians did not respond to requests for comment on the issue. Historically, Indian tribes have had exclusivity for Class III gaming in California, a privilege granted through Proposition 1A in 2000, which allows them to operate slots and house-banked table games. Card rooms, on the other hand, are limited to offering player-banked, peer-to-peer gameplay. This distinction creates a substantial revenue gap, with tribal casinos generating $12.1 billion in fiscal year 2024, compared to an estimated $5.6 billion annual economic impact from card rooms in 2019.
In 2007, card rooms began using third-party proposition players (TPPPs), licensed contractors who operate as designated player-dealers in card rooms. This system enables card rooms to facilitate Class III-style games, like blackjack and baccarat, despite tribes arguing that this bypasses their exclusivity rights. Proponents argue that regulations require TPPPs to remain financially independent from card rooms, providing a clear distinction from house-banking games.
“Let’s be clear: these are legal, licensed, and regulated games,” stated Hawaiian Gardens Mayor Dandy de Paula at the protest. His city hosts Gardens Casino, the state’s second-largest card room by table count. Despite such assurances, the connections between card room owners and TPPPs remain intricate and controversial.
The creator of the TPPP concept, Bob Lytle, who previously served as the state’s top gaming regulator, later worked for a card room, raising concerns about regulatory influence. Although Lytle was banned from the state’s gaming industry in 2016 due to tax fraud and other charges, the TPPP system continues to face scrutiny.
The legal landscape saw developments with SB 549, the Tribal Nations Access to Justice Act, which allowed tribes a unique opportunity to sue card rooms over banked-games issues. However, a lawsuit filed in January was dismissed by Sacramento County Superior Court Judge Lauri A Damrell, citing preemption by the Indian Gaming Regulatory Act. Tribes plan to appeal the decision, signaling an ongoing legal battle.
Despite this setback, tribes have successfully defended their exclusivity in past challenges, including defeating Proposition 27 in 2022 and supporting a ban on sweepstakes sites. Additionally, the Attorney General’s office declared most forms of daily fantasy sports illegal in July, aligning with tribal interests.
As SB 549 was debated, Bonta and the Bureau of Gambling Control (BGC) initiated rulemaking processes, leading to the proposed regulations on player-dealers and blackjack-style games. Public comments from both tribes and card rooms were collected in October 2023, with official notices published in April 2025. The changes suggest a significant shift in gaming operations, aiming to clarify and enforce existing regulations.
The proposed regulations stipulate that player-dealers must be offered to all players before each hand, with specific surveillance requirements. They also mandate that the player-dealer role rotates among players, limiting TPPP influence. In blackjack-style games, the traditional “bust” feature would be removed, altering gameplay to focus on achieving a target point count rather than 21.
These changes have prompted concerns from city leaders like Compton Mayor Emma Sharif, who questions why tribes should have exclusive rights to blackjack when cities rely on this revenue for survival. For many, the proposed regulations threaten more than just a game; they jeopardize jobs and livelihoods.
Tribes are accused of driving the push for new regulations, aligning with their long-held objections to card room operations. The BGC’s notice asserts that the changes aim to benefit public health, safety, and welfare by ensuring compliance with state gambling laws.
Both tribes and card rooms have invested heavily in state politics, with tribes holding significant financial sway. From 2014 to 2024, tribes donated $23.5 million to state candidates, compared to $3.8 million from card rooms. Attorney General Bonta received contributions from both sides during his 2022 campaign, with tribes being the larger donors.
Despite their differences, both groups share a reliance on gaming revenue. For tribes, gaming has transformed community life, significantly reducing poverty rates and creating employment opportunities. Tribal casinos are recognized as major employers and community partners, gaining accolades in hospitality and gaming.
“We are very much focused on being good community partners,” CNIGA Chairman James Siva stated, emphasizing the importance of defending tribal sovereignty in the face of gaming expansion.
Card rooms, primarily located in minority communities, also play a crucial role in local economies. Cities like Commerce and Bell Gardens have predominantly Hispanic populations, and card rooms provide vital employment opportunities. For individuals like Nary Chin, a dealer at Gardens Casino, the card room represents the realization of the American dream.
“Without our card room, I don’t think I would be here today,” Chin shared, reflecting on the job’s importance to her family’s well-being and her personal journey. The potential loss of blackjack-style games poses a threat to her livelihood and the stability it has provided.
As the debate over gaming regulations continues, the future of California’s card rooms and the communities they support remains uncertain, with both sides entrenched in a battle for economic survival.
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