{"id":16494,"date":"2018-10-30T13:08:44","date_gmt":"2018-10-30T14:08:44","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=16494"},"modified":"2018-10-30T14:47:00","modified_gmt":"2018-10-30T14:47:00","slug":"regulators-ready-to-crack-down-on-california-card-rooms","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/regulators-ready-to-crack-down-on-california-card-rooms\/","title":{"rendered":"Regulators Ready To Crack Down On California Card Rooms"},"content":{"rendered":"
California\u2019s Bureau of Gambling Control (BGC)<\/a><\/strong> is poised to begin a crackdown on card rooms offering games like blackjack, as the latest lines in the battle over what games the would-be casinos can legally spread are drawn.<\/p>\n In 2000, Native American tribes<\/strong> were given what they believe is a constitutional guarantee that only tribal casinos can offer casino-style gambling in California. However, California card rooms<\/strong>, which had been traditionally poker-only, wanted a piece of the pie.<\/p>\n A year later, the card rooms successfully lobbied California lawmakers to amend the law. It now allows card rooms to offer games like blackjack and Pai Gow with one caveat. It states players must act as the bank, not the house.<\/p>\n The card rooms began referring to the games as California<\/strong> or Asian<\/strong> games. This simply means games like blackjack and Pai Gow with a rotating player-dealer position.<\/p>\n Soon after, many of the states\u2019 now 74 card rooms<\/strong><\/a> started skirting around the law by hiring proposition players<\/strong> to bankroll the games and cut them in. In fact, a cottage industry has been born out of it, with third-party proposition player firms<\/strong> establishing themselves to work with the card rooms.<\/p>\n Some card rooms simply ignored the law altogether and started banking their own casino games.<\/p>\n Native American tribes have long cried foul, claiming the activity infringes upon their exclusive right to offer casino-style games<\/strong> in California.<\/p>\n At the end of last month, the BGC, an arm of Attorney General Xavier Becerra\u2019s Department of Justice<\/strong>, suddenly decided to do something about it.<\/p>\n BGC Director Stephanie Shimazu<\/strong> issued a memo on Sept. 25 stating the BGC plans to take away card room approvals for those with games that are much too similar to the casino games prohibited by state law, including blackjack.<\/p>\n Shimazu said the BGC is planning to notify card rooms across the state and delay enforcement for now. A move that would give the card rooms time to prepare for the inevitable action against them. She also swore to uphold regulations for California and Asian games requiring the games to be player banked.<\/p>\n On the surface, the crackdown would appear to appease gaming tribes in the state, which own California\u2019s 63 tribal casinos<\/strong>. However, Steve Stallings<\/strong>, chairman of the California Nations Indian Gaming Association<\/strong>, told CDC Gaming Reports<\/strong><\/a> it\u2019s all political posturing:<\/p>\n \u201cIt\u2019s a delaying tactic. At this point, we\u2019re suing.\u201d<\/p><\/blockquote>\n Of course, California gaming tribes have been threatening for years to sue regulators and card rooms. The tribes claim allowing casino-style gaming at the card rooms is a violation of various tribal-state compacts<\/strong>. Plus, tribes claim it goes against the 2000 California ballot initiative<\/strong> that promised the tribes exclusivity on casino-style gambling.<\/p>\n Obviously, the card rooms are not happy about the crackdown either. Austin Lee<\/strong>, executive director of Communities for California Cardrooms<\/strong>, called the BGC\u2019s move unprecedented:<\/p>\n \u201cThe Bureau\u2019s announcement to revoke game approvals for various versions of blackjack on a statewide basis is unprecedented. It would require cardrooms to significantly adjust operations.\u201d<\/p><\/blockquote>\n Meanwhile, the many California municipalities that have come to depend on tax revenues local card rooms generate are also concerned.<\/p>\n California card rooms generate an estimated $300 million<\/strong> in federal, state, and local taxes. Some municipalities across the state depend on municipal taxes from card rooms to cover up to 60 percent<\/strong> or more of the municipal budget.<\/p>\nNative American gaming tribes cry foul<\/span><\/h2>\n
All sides angered<\/span><\/h2>\n