The long-standing rivalry between California’s tribal casinos and licensed card rooms has resurfaced after the state’s Attorney General introduced new regulations aimed at tightening control over card-room operations. The proposal seeks to impose stricter anti-money-laundering requirements, enhanced financial audits, and limitations on so-called “house-banked” or “banked” card games — formats that have long generated conflict between the two sectors.
Cardroom and casino workers prepare statewide prot...
According to the Department of Justice, the reforms are designed to “strengthen transparency and integrity” in California’s gaming market. Officials argue that the current system allows inconsistent oversight across venues, especially where card rooms use third-party proposition players to simulate banked games. The new framework would align these establishments with compliance standards already applied to tribal casinos and commercial gambling operations.
Card-room representatives have voiced concern that the proposal could threaten their economic viability. Many argue that the new compliance measures would create an excessive financial burden, particularly for smaller operators that already face narrow profit margins. Industry groups have requested a transitional period and claim the initiative is politically motivated by tribal lobbying efforts.
Tribal leaders, however, support the proposed reforms. They maintain that card rooms have operated beyond the scope of their legal permissions by offering variations of games that resemble house-banked casino play. “These rules bring the market back within the law,” a tribal gaming representative told emphasizing that the tribes’ compacts guarantee exclusivity over casino-style gaming.
California currently hosts more than 70 tribal casinos and around 85 licensed card rooms, together employing tens of thousands of workers and generating billions in annual revenue. The state’s Department of Justice has opened a consultation period for public and industry feedback before finalizing the new regulations.
If approved, the measures would significantly change how card rooms operate and could further consolidate the dominance of tribal casinos in the state’s gambling market. The outcome will determine the future balance of California’s gaming industry — one that remains deeply divided over where the line between competition and exclusivity should be drawn.
