California’s ‘blackjack ban’ in card houses could jeopardize ‘thousands of working families’ and cost millions, experts warn

The new regulations go into effect in April NewsWorldAmericasCalifornia’s ‘blackjack ban’ in card houses could jeopardize ‘thousands of working families’ and cost millions, experts warnThe new regulations go into effect in AprilGraig Graziosi in Washington, D.C. Wednesday 18 February 2026 20:25 GMTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popoverRelated video: 1 in 3 boys gambled in the past year, study findsYour support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read moreCalifornia’s card rooms may be folding in the wake of a new regulation banning blackjack from their tables. California's Office of Administrative Law is moving forward with rules that will end blackjack at card rooms beginning in April. Gambling is largely illegal in California. Per state law, only Native American tribal groups can operate Class III casino games, like slot machines and "banked" table game like blackjack, baccarat, and some forms of poker. Card room operators relied on a loophole in the state's gaming agreement with Tribal casinos to play games like blackjack without a "house" dealer. The passage of the new law in April will make it impossible for card rooms to run blackjack games or to effectively employ contracted "third-party player-dealers.” Some industry leaders are warning that the new regulations will not only hobble the popular card rooms, but also take a serious bite out of city coffers as the tax revenue from the gaming halls dries up. open image in galleryBeginning in April, California card rooms will no longer be able to offer blackjack or third-party dedicated ‘player-dealers,’ which some critics say will destroy the card room industry (Getty Images)What are card rooms? In simplest terms, card rooms are establishments where players play card games against each other, rather than against the operators of the facility — often colloquially called "the house." Card rooms have existed in the state since at least the gold rush, and became popular replacements for proper casinos when gambling in "banked" games — games where the house has a stake in the outcome — was banned in 1872. Typically a dealer is the representative of the house in a casino game. In some games — like blackjack — rather than competing against each other, the players all compete against the dealer. Card rooms continued to operate and saw a spike in popularity during the 1980s after a struggling California card room operator created Pai Gow poker, but their existence was formally challenged in 1999 after the state agreed to give Tribal casinos the exclusive rights to operate banked gambling in the state. Tribal casinos vs private card roomsTribal casinos operate beyond the regulatory arm of California's gaming commission, as they exist on sovereign tribal land, not state-controlled land. Operators of tribal casinos have argued for decades that California's card rooms were actually violating the state's gambling laws through a loophole. Card rooms do not and cannot, by law, have dealers who play games on behalf of the house. The duty of playing as the dealer falls to players. The regulatory language left enough room for a new gambling-adjacent industry to grow, and agencies known as 'Third-Party Providers of Proposition Player Services" (TPPPS) sprouted. These agencies employ players who go into card rooms specifically to act as the "banker" or the "player-dealer." "Under California law, cardrooms offer all players the opportunity to be the 'player-dealer' and wager on the dealer’s position or hand – playing against the other players, collecting losing wagers and paying winning wagers to the extent of the player-dealer wager," the California Cardroom Alliance says on its website. Until now, the California Bureau of Gambling Control has accepted the player-dealer agencies and attorneys representing card rooms have insisted the practice is "completely legal." open image in galleryThe Pechanga Resort & Casino in Temecula, California is the largest Native American tribal casino in the state. New gaming regulations in California will end a decades-long battle between tribal casinos and card