A California judge granted an injunction preventing blackjack rule changes from taking effect for cardrooms. The changes were expected to reduce cardroom revenue by up to $68 million and eliminate about half of cardroom jobs, according to state and industry estimates. Cities warned the changes could reduce tax revenue and some responded with tax hikes to offset potential losses. The rules were ordered by the Bureau of Gambling Control and approved through administrative processes, with enforcement expected later. The dispute centers on whether the Bureau can set standards for what games are legal or whether rule-setting authority belongs to the California Gambling Control Commission. The judge found, at least preliminarily, that the Gambling Control Act may not permit the Bureau to make those determinations.
"Justice Department attorney Sharon O'Grady told the court the department determines which games can be played in the state. She said focusing on rules was a matter of semantics. The bureau has the power to decide what is a "controlled" game under state law, she said. "What is a card game goes to the heart of what is legal," she added."
#california-gambling-regulation #blackjack-rules #cardroom-revenue-and-jobs #administrative-law #injunctions
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