California Governor signs bill establishing 20-year cardroom moratorium

The bill was introduced by Assemblymember James Ramos, D-San Bernardino.

“I am happy to have brought the tribes and cardrooms together in a historic consensus that has resulted in the bipartisan AB 341 becoming law,” Ramos is quoted as saying in a news release issued Tuesday. “I deeply appreciate Gov. Newsom’s support for AB 341, which will help ensure the vitality of the gaming industry by allowing for measured cardroom growth without overexpansion over the next 20 years.”

The bill effectively restarts a moratorium first established by the Gambling Control Act of 1997, which prevented new cardrooms from opening and existing ones from expanding. That act had been repeatedly extended by the Legislature before finally expiring on Jan. 1 of this year.

Under AB 341, no new cardrooms can open before Jan. 1, 2043. But existing cardrooms with fewer than 20 gambling tables can add up to 10 new tables during that time. The expansion would happen in a staggered fashion, with two new tables able to be added in the first year and then two new tables every four years after that.

Historically, cardrooms and tribes — competitors in California’s gambling industry — have found themselves at odds in the past. In 2022, they came out on opposite sides of Prop. 26, which would have allowed casinos to take cardrooms to court over alleged violations of state gambling rules.

In contrast, AB 341 was supported by cardrooms and more than 40 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. The bill was approved 68-1 in the Assembly in March and 32-0 in the state Senate on May 11.

“The overwhelming support for AB 341 by state legislators, tribes and cardrooms aligns with the will of California voters who have consistently stood with Indian tribes in support of gaming on federally-recognized tribal lands while opposing overexpansion of gaming across the state,” Morongo Tribal Chairman Charles Martin is quoted as saying in the news release.

“This new law will provide smaller cardrooms and their communities the opportunity to grow over time and create new jobs and local economic benefits without oversaturating the gaming market,” Keith Sharp, president of the California Cardroom Alliance, was quoted as saying in the same release.