The recent case has become one of the most politically explosive gambling disputes in California. Designed by Magnific

CITRUS HEIGHTS, CA (MPG) - California cardrooms including Stones Casino in Citrus Heights can continue to legally offer blackjack-style games after a San Francisco Superior Court judge on Thursday, May 21, blocked the enforcement of new state regulations which would have effectively banned them.

Superior Court Judge Richard Darwin issued a preliminary injunction pausing the regulations while a legal challenge from the California Gaming Association (CGA) will continue to proceed through the courts.

Darwin found that Bonta’s Bureau of Gambling Control likely exceeded its legal authority when it adopted sweeping regulations targeting blackjack-style games long operated by California cardrooms.

The decision marks a significant victory for California’s cardroom industry and for cities heavily dependent on gambling tax revenue, including Citrus Heights, Commerce, Hawaiian Gardens and Bell Gardens.

The court’s recent ruling also strengthens the cardrooms’ argument that the Bureau of Gaming Control likely overstepped its authority by effectively rewriting California gaming policy without legislative approval.

The CGA, with support from the California Cardroom Alliance (CCA) and the Communities for California Cardrooms (CCC), had filed two lawsuits in San Francisco Superior Court challenging new regulations issued by the California Department of Justice’s Bureau of Gambling Control, which would eliminate blackjack-style games and significantly restrict player-dealer games that have been legally operated in California cardrooms for decades.

The state Bureau of Gambling Control had ordered card rooms to explain by May 31 how they would comply with new regulations limiting what games could be played.

Citrus Heights has been home to cardrooms since at least the 1950s, and today, Stones Gambling Hall is one of the premier Sacramento-area casinos and gambling halls.

The Stones Gambling Hall opened in 2014 after its ownership group invested more than $30 million to transform a largely vacant retail center along Antelope Road into a full-scale, 27,000-square-foot gaming and entertainment venue, operating under one of California’s most tightly regulated gaming models.

Stones employs roughly 300 workers and operates 17 tables, including seven that offer blackjack-style games, according to the company.

Those games are not house-banked. Instead, one player at a time takes on the “player-dealer” role, wagering against others at the table.

Licensed third-party proposition player services — independent companies that supply players to take on the player-dealer role and keep games running — help ensure continuity, with all activity regulated and approved by the state, Stones general counsel Heather Guerena said in a recent interview with the Sacramento Bee.

“The City didn’t take an official position relative to the litigation,” said Marisa Brown, Citrus Heights city communications officer.

City Manager Ashley Feeney provided a legal declaration along with other cities in support of the Petitioner’s motion for a preliminary injunction seeking a stay of the California Bureau of Gaming Control’s (“Bureau”) regulations concerning player dealer games and blackjack-style games.

“The city of Citrus Heights is especially proud of its strong network of locally owned businesses that create jobs, support community events, and gives the city its unique character,” he stated in his declaration.

“Stones generates positive tax revenues which add to the total revenue in our city’s general fund, and (these funds) are used to provide our residents with essential services, such as important public infrastructure and public safety.”

“Patrons who visit Stones support nearby restaurants, retail stores, and service providers before and after their visits, generating additional customer traffic and revenue for local establishments,” Feeney said.

“Stones also maintains direct business relationships with local vendors, contractors, and service companies, further strengthening the local economy and helping small businesses in Citrus Heights grow and thrive.”

This contributes to the safety and security of the surrounding community.

“Through its partnership with the Citrus Heights Police Department, Stones helps fund the presence of off-duty police officers on-site, which enhances public safety both at the establishment and in the surrounding area,” Feeney said.

“To the extent that the Regulations would reduce Stones’s revenues and require layoffs, the Regulations would create immediate and severe hardship for our residents who currently work at Stones. That type of sudden unemployment would also place a significant strain on (city) social services,” Feeney said, concluding his declaration.

In February 2026, two sets of California Department of Justice (DOJ) regulations governing cardrooms, one concerning Rotation of the Player-Dealer Position and the other concerning Blackjack-Style games, were approved by the Office of Administrative Law (OAL).

These state regulations were then to take effect on April 1, 2026, but as specified in the regulations, the deadline for cardrooms to submit plans for compliance with the regulations to DOJ was on May 31.

The two rulemaking proceedings, one concerning the rotation of the player-dealer position in California gambling establishments, and the other concerning blackjack-style games, are major regulations that share the same Standardized Regulatory Impact Assessment (SRIA).

Under one of the two new rules, cardrooms could not offer blackjack, the world’s most popular casino card game. Players would no longer “bust” by exceeding 21 points, and cardrooms may not use the name “blackjack” or include the number 21.

In all, there are 88 licensed card rooms in California, the California Cardroom Alliance said. They offer more than 1,900 tables for various games and employ more than 23,000 people.

Cardrooms argued throughout the legal battle that Bonta’s office was attempting to effectively outlaw games that had long been permitted through prior state approvals and regulatory practices.

The recent case has become one of the most politically explosive gambling disputes in California, pitting wealthy tribal gaming interests against cardrooms, labor unions and local governments dependent on casino tax revenue.

According to a news release from the California Gaming Association (CGA), Superior Court judge Richard Darwin found “clear and convincing evidence” that enforcing the regulations would irreparably harm cardrooms and their communities, CGA said.

Kyle Kirkland, owner of Club One Casino in Fresno and president of the CGA, said the court’s ruling validates the group’s contention that the bureau exceeded its authority by trying to rewrite the state’s gaming laws.

He said the regulations were driven by pressure from “powerful tribal gaming interests” that have long sought to eliminate competition from California cardrooms.

“Cardrooms have lawfully operated the games targeted by these regulations for decades. Our games support thousands of middle-class jobs and generate critical revenue for communities across California. Instead of protecting those communities, Attorney General Bonta chose to advance regulations that threaten local economies, public safety funding, and the livelihoods of thousands of Californians,” Kirkland said.

“Today’s ruling validates what we have said all along: Attorney General Bonta and the Bureau of Gambling Control exceeded their authority by attempting to rewrite California gaming law,” said California Gaming Association President Kyle Kirkland.

“These regulations were driven by pressure from powerful tribal gaming interests that have long sought to eliminate lawful competition from California’s cardrooms,” Kirkland said.