Latin Business Association Joins Cardroom Coalition to Oppose Proposed California Regulations

The Latin Business Association (LBA) has joined the Coalition to Protect Cardroom Communities in opposing proposed changes to the state’s cardroom gaming laws by California Attorney General Rob Bonta’s Office, warning the rules would disproportionately harm Latino-majority cities that depend heavily on cardroom revenue.

The move gives the opposition significant political backing. California cardrooms argue that Bonta’s proposed changes would threaten the livelihoods of thousands of employees and result in millions of dollars in lost tax revenue to local municipalities.

In California, only Native American tribes are permitted to operate “banked games.” These are casino games where the player plays against the dealer, such as blackjack and baccarat.

However, cardrooms operate through a legal structure where third-party providers, rather than casino employees, act as dealers.

LBA Raises Equity Concerns

The LBA — representing more than 800,000 Latino-owned businesses in California— said the regulations would “disproportionately affect Latino communities and businesses.” The organization has emphasized that many affected cardroom cities are majority-Latino.

In an announcement, Ruben Guerra, Chairman of LBA, said:

“These regulations are not just anti-business, they’re anti-community … Latino cities depend on the jobs and revenue cardrooms create. If these rules go through, local budgets, small businesses, and working families will all pay the price.“

Cities such as Hawaiian Gardens, Bell Gardens, and Commerce rely heavily on cardroom taxes:

• In Hawaiian Gardens, 70% of the city’s general fund comes from cardroom taxes.
• In Bell Gardens, cardroom revenue accounts for half of the city’s budget.
• In Commerce, it accounts for 40% of the general fund.

Critics argue the proposal would cut funding to public safety, parks, senior services, and other essential programs supported by that revenue.

Coalition Warns of ‘Devastating’ Local Impact

The Coalition to Protect Cardroom Communities has long echoed the LBA’s concerns about the economic effects of the changes.

During the October demonstrations, California Cities for Self-Reliance Joint Powers Authority, American Federation of State, County and Municipal Employees (AFSCME) union members, city workers, and cardroom workers protested outside Bonta’s Sacramento Office.

Juan Garza, the executive director of California Cities for Self-Reliance, estimated that as many as 8,000 jobs could be at risk. Meanwhile, Shavon Moore-Cage, the Political Advocate and past Vice President of AFSCME Local 36, compared the effects of job loss and city funding cuts to those of the COVID-19 pandemic.

“We can’t survive another hit like that, and this time, it’s not a pandemic; it’s an attack by policy that can be avoided,” she said.

Mayors and city leaders from municipalities such as Hawaiian Gardens, Bell Gardens, Commerce, Compton, and Gardena have also come out in opposition.

Opponents have often referred to a report commissioned by Bonta’s office. The report estimates cardrooms would lose $464 million in revenue and 3,600 full-time jobs over the next decade. Meanwhile, tribal casinos would gain about $232 million.

What Bonta’s Proposal Would Change

Bonta’s proposal focuses on two pillars of cardroom operations:

• Player-dealer rotation: Only players seated at the table — not third-party proposition player service employees — may act as the dealer. Players must rotate every 20 minutes.
• Blackjack-style games: The rules would prohibit using “21” as a target number, remove “busting,” eliminate blackjack terminology, and alter tie outcomes.

Cardrooms argue that these changes would render blackjack-style games commercially unviable, effectively removing some of the industry’s most popular offerings.

Regulatory & Tribal Position

Supporters of the proposed rules — particularly tribal gaming advocates — argue they are essential to reinforcing California’s prohibition on house-banked games outside tribal casinos. They claim the player-dealer model has evolved in ways that blur that legal boundary.

Native tribes and cardrooms have had a long-standing tension and legal fights. In October, a Sacramento Superior Court judge ruled the tribes’ SB 549 lawsuit was preempted by federal law.

The Attorney General’s Office has described the changes as a long-overdue modernization aimed at clarifying regulatory ambiguities. They would also align state practice with the commitments outlined in the tribal compact.