California Gaming Assoc. sues over state-proposed restrictions to player-dealer games in card rooms

SAN JOSE, Calif. (KGO) -- The California Gaming Association is upping the ante to try to block new rules from the state's justice department by taking the fight from the card room to the courtroom.

The CGA is suing over new rules approved by the California Office of Administrative Law from the California Department of Justice that will impact card rooms statewide.

The new rules include banning traditional blackjack and implementing stricter rotation of the player-dealer position outside of tribal casinos.

Many card rooms rely on games, like blackjack, for the bulk of their revenue.

"We hope that they're able to come back and give us a pause so we can consider the legality of the laws themselves and the regulatory changes," Casino M8trix Vice President Rob Lindo said. "As well as figure out how we can maybe come up with some sort of resolution that's going to keep people employed, keep these games running, as they have been for decades, legally."

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In February, the California Office of Administrative Law approved the card room changes from the DOJ.

But Lindo says those rules could collapse the industry and impact thousands of employees across California.

"They don't know if they're going to have a job in a few months," Lindo said. "Ninety-three percent of our employees are people of color, 50% of them are women. The AG says that his goal is to protect vulnerable populations and people of color. By putting 50% of our employees out of work, I don't know how that's meeting his objectives."

In addition, the City of San Jose says $32 million in annual tax revenue would disappear under new rules.

According to a letter submitted to the DOJ, that revenue helps fund 95 police officers, 106 firefighters, the costs associated with 911 and police dispatch services and solutions to homelessness.

Councilmember Michael Mulcahy represents the district home to M8trix and Bay 101 casinos.

"If the point is to try to protect communities by making this shift by the AG, it seems to me like there's unintended consequences potentially," Mulcahy said.

Regulations will go into effect on April 1s, but card rooms will have some time to implement those changes, meaning everything will stay the same for players until at least the fall.

But Lindo hopes for a decision on the injunction before May 31, when cardrooms must submit compliance plans.