Monday

06-30-2025 Vol 2007

California’s Proposed Regulations Threaten Thousands of Jobs in Legal Cardroom Industry

In California, the ongoing debate surrounding job security has taken a new turn as labor unions alert the public to potential job losses across various sectors. The state’s Attorney General, however, is facing criticism for proposed regulations that could jeopardize the livelihoods of thousands of workers in the legal cardroom industry.

Representatives from AFSCME, the largest public service employees union in the nation, are raising their voices against these proposals, highlighting their potential to devastate California’s thriving cardroom sector. With over 1.4 million workers, including 100,000 public service workers in California, the implications of these regulations are alarming.

At the heart of the issue are the jobs that could be lost if proposed regulations go into effect. The revenue generated from cardrooms funds vital public services across the state, covering everything from public works crews to librarians and senior center staff. If these sources of income are wiped out, the consequences would be dire for many working-class families who depend on these positions.

California is already grappling with significant budget shortfalls, and local governments are bracing for potential service cuts. The timing of the Attorney General’s proposed regulations feels particularly disheartening, as leaders in California work to protect jobs from automation and other threats.

The communities relying on cardroom revenues are often working-class areas, many with strong ties to racial and ethnic diversity. In Hawaiian Gardens, for example, local cardroom revenue makes up over 70% of the general fund. Similarly in Commerce, about 50% of the budget is derived from cardrooms, and in Bell Gardens, the figure exceeds one-third of the budget. The city of San Jose could see annual losses reach $30 million.

This revenue not only supports local jobs but also plays a crucial role in maintaining essential public services like libraries, parks, and emergency services. The potential loss of these funds would significantly impact communities and the workers who serve them.

Many individuals directly invested in the legal cardroom industry have already experienced the harsh effects of a shutdown, particularly during the 18-month closure amid the pandemic. This crisis forced city officials to make painful decisions that resulted in service cuts and layoffs, leaving many workers uncertain about their futures. When cardrooms eventually reopened, many were relieved to regain their positions, but the risk of losing their jobs and benefits remains a pressing concern.

The ripple effects released by the proposed regulations extend far beyond immediate job losses. Layoffs, reduced hours, cuts to pensions, and an elimination of vital programs for seniors and vulnerable families are all possible outcomes should these changes go ahead. Larger cities like San Jose and Fresno face particularly painful decisions, while smaller cities may find themselves on the brink of collapse.

What raises eyebrows is the fact that these cardrooms operate legally, with games reviewed and approved by the state Department of Justice. This status has persisted under both Republican and Democratic Attorneys General, including California’s Governor Jerry Brown and Vice President Kamala Harris. The question remains: Why is there a push for change now?

Interestingly, last year’s legislative changes already allowed ultra-wealthy gaming tribes to pursue legal action against cardrooms. Many wonder why the Attorney General is rushing to implement new policies when the legal process is still unfolding. Banning popular games would effectively create new laws—an area where the Attorney General lacks authority.

The Attorney General’s sudden shift stands in stark contrast to the pro-worker image he has cultivated. With a significant portion of jobs in the cardroom industry held by workers of color, the communities most impacted are low-income neighborhoods that offer few alternative opportunities.

The response against these regulations is not partisan; local leaders across the political spectrum—mayors, council members, law enforcement, and labor unions—are united in their opposition. They collectively agree: the time for regulatory changes targeting legitimate jobs should come to an end.

In a time filled with economic uncertainty, it is crucial for California to protect middle-class jobs and the stability of local governments. Attorney General Rob Bonta is urged to reconsider his proposed regulations, which threaten to harm the very workers he claims to champion.

In a state proud of its labor legacy, protecting local jobs shouldn’t just remain a priority—it should be a guiding principle.

image source from:lasentinel

Charlotte Hayes