California lawmaker aims to revive 25-year-old cardroom moratorium

Smaller cardrooms would be able to expand if a proposed a new gambling bill backed by California tribes gets the approval of the state legislature.

On Jan. 30, state Assemblymember James Ramos, the first California Indian ever elected to the state legislature, introduced AB 341,  an assembly that seeks to revive a 25-year-old cardroom moratorium.

The new bill would re-create a moratorium, that was previously established by the Gambling Control Act of 1997, which prevented new cardrooms from opening and existing ones from expanding. The act set a 10-year moratorium on cardroom expansions, which the state legislature extended periodically with the exception of last year.

The vote on a bill to extend the moratorium failed after California Senate Governmental Organization Committee Chair Bill Dodd broke the deadlocked 3-3 vote causing the bill not to meet the Senate’s deadline for passing legislation.

If the the bill passes it would create a new moratorium that would expire on Jan. 1, 2043. It would not allow new cardrooms or large-scale expansions, but would aid smaller cardrooms in growing their revenue.

Existing cardrooms with 20 or fewer tables would be allowed to expand the number of tables by up to two within the first year after the ordinance takes effect and up to two additional tables every four years after. However, across the board, this bill would only allow establishments to add up to 10 more tables than they had starting on Jan. 1, 2023.

The bill has to wait 30 days from the date it was introduced before the Assembly Rules Committee assigns it to the appropriate committee for voting and moves through the state legislature for final approval.

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Cardrooms and tribes have usually found themselves at opposite ends of the aisle, with tribes long arguing that cardrooms circumvent the law in how they offer poker and other card games.

In 2022, during the legislative battle over the future of sports betting, cardrooms joined the opposition to Proposition 26, which contained a provision allowing casinos to take cardrooms to court over alleged violations of gaming rules.

With AB 341, cardrooms and tribes have both shown support.

Five California tribes, including the Cahuilla Band of Mission Indians, Morongo Band of Mission Indians, San Manuel Band of Mission Indians, Santa Ynez Band of Chumash Indians and Soboba Band of Luiseno Indians, issued a joint statement on the proposed bill.

“We believe the proposed legislation by Assemblymember Ramos provides a balance by allowing for a measured expansion of California’s cardroom industry. We look forward to working with the Legislature, the cardroom industry and the tribal community on finding a balance that is consistent with California voters’ support of tribal gaming,” the statement read.

On Feb. 6, the California Cardroom Alliance also issued a statement expressing support for the legislation.

“Assembly Bill 341 addresses the need for an expansion of tables at California cardrooms while maintaining a cardroom license moratorium that has been in place for decades. We look forward to working with the tribal community, the State Legislature and the Governor’s Administration to pass a measure that supports communities across California,” the statement read.

Assemblymember Ramos’ could not be reached for an interview but his office issued the following statement:

“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.”