If you thought California sports betting was the only struggling market, you were wrong. The Gambling Control Act of 1997 limited the expansion of cardrooms in the state.
It eventually expired at the beginning of this year, after being extended several times. New cardroom licenses could not be granted under the Gambling Control Act of 1997. Simultaneously, such businesses were not permitted to grow their offerings by adding new gaming tables.
But now, a new plan to gradually expand the state’s gambling market is gaining traction. Assembly Bill 341 (AB 341) passed the full Assembly by a 68-1 vote and is now headed to the Senate.
Expansion Ahead for Californians
AB 341 will reenact a moratorium on new cardroom licenses that had been established by the Gambling Control Act of 1997 while also allowing for growth at the state’s existing cardrooms.
The proposal would enable cardrooms in the state to expand their operations by increasing the number of gaming tables. If AB 341 is signed into law, it will allow licensed cardrooms in California with 20 or fewer gaming tables to increase the number of gaming tables by 10 over 20 years.
What California AB 341 Allows
If the bill passes, cardrooms will be permitted to add two new gaming tables within the first year and two more gaming tables every four years.
The bill’s language also states that tables could be added in cities or counties where an ordinance supporting the expansion was approved by a majority of voters after Nov. 1, 2020, but not in cities or counties that voted to allow more tables after Jan. 1, 2023.
The measure would also apply only to card rooms that were open and licensed before December 31, 2022. Any license issued between that period and January 1, 2024, is now considered null and void.
AB 341’s supporters say that this would allow for the gradual expansion of the market. They say it will give businesses the chance to grow while ensuring that the market does not become overcrowded.
What Are California Cardrooms?
California cardrooms are establishments where card games are played for money. They are legal in California, where gambling is heavily regulated, but only under certain conditions.
Unlike traditional or online casinos, cardrooms do not have slot machines or other forms of casino-style gaming. Instead, they offer games like poker, pai gow, baccarat, and blackjack, in which players compete against each other rather than against the house.
In most cases, the cardroom takes a small percentage of each pot as a fee for providing the space, staff, and equipment. California cardrooms have a long and controversial history, and there have been many legal battles over their status and regulation.
What’s Next for California AB 341?
Cardrooms and tribes have long been at odds, with tribes claiming that cardrooms violate the law by offering poker and other card games. But Assembly member James Roms, who introduced the bill, told SiliconValley.com that he thinks everybody is now on the same page.
“I have brought the tribes and cardrooms together to work out a consensus. That has resulted in AB 341 which has received broad support from both the cardrooms and tribes. It provides a path forward for allowing measured cardroom growth without overexpansion to ensure the vitality of the gaming industry in the coming years,” he said.
AB 341 is supported by the California Nations Indian Gaming Association (CNIGA), California Cardroom Alliance, Communities for California Cardrooms, California Cities for Self-Reliance JPA, and over 20 tribes and cardrooms across the state. So, supporters are hopeful it will move through the Senate without much pushback.
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