The dispute between California’s gaming tribes and the state card rooms amped up a level last week when the Bureau of Gambling Control issued a memo warning the card rooms that there will be increased scrutiny about their adherence to regulations concerning table games currently being offered at the establishments.
The memo comes in the context of a state audit of the two regulatory agencies controlling the card rooms—the Bureau of Gambling Control (BGC) and California Gambling Control Commission (CGCC). The audit comes as a result of an investigation into the agencies for alleged discrimination against Asian Pacific Islander (API) businesses and employees. The probe is also looking into possible misuse of the $57 million surplus gaming control funds (GCF) they oversee.
Two California Assembly members, Rob Bonta and David Chiu, requested the audit to examine backlogs in the approval and renewal of licenses and games in the cardroom industry. Bonta wants the audit to determine how the licenses are issued, who they are issued to, and if all applications are processed fairly with no difference in race or national origin.
Bonta says both agencies have received an increased budget and more employees and the time for licensing and approvals have still deteriorated. Under the law, the process should take no more than 180 days, but have averaged between four and eight years.
The investigation has also focused on the procedures surrounding the card games offered at the rooms. Originally poker rooms, the facilities began offering blackjack, baccarat and other recognizable casino games, with the context that the deal is rotated among the players, similar to poker. But “independent” companies arose that banked the games themselves and did not rotate the deal, making them exactly like the casino table games that are the exclusive right of the tribal gaming halls.
The memo from the BGC noted there would be increase scrutiny of those procedures and approvals could be withdrawn.
“The Bureau of Gambling Control (BGC) plans to rescind game rules approvals for games too similar to 21/Blackjack that are prohibited by state law,” read the memo.
“We will notify cardrooms and defer enforcement for a specified period of time to enable cardrooms to prepare for this action.”
As for the controversial dealer-rotation requirement, the memo said, “BGC will promulgate regulations to address rotation of the player-dealer position. Workshops in various locations throughout the state will occur prior to initiation of the formal rulemaking process.”
