California Imposes Moratorium on Cardroom Expansion

California Governor Gavin Newsom has signed a bill that reinstates the Golden State's moratorium on cardroom expansion, which will take place until at least 2043.

Newsom signed AB 341 into law this week, which stops the California Gambling Control Commission from issuing new licenses for the cardrooms until at least 2043, when the law would expire. The bill was widely supported by both Native American tribes as well as the existing cardrooms. The initial moratorium was put into place in 1997 with a 25 ban on new licenses, and has been followed up with a 20-year measure.

AB 341 is retroactive, so any cardrooms that had pending applications will not be able to have their requests filled. With the moratorium, there is an expansion in the number of tables each cardroom can offer. Those with under 20 tables can add two more within its first year. Two additional tables will be available to be added every four years afterward.

Regarding the law, California Nations Indian Gaming Association Chairman James Siva said, "CNIGA's backing of this legislation is not a tacit endorsement of illegal games being offered at the state's commercial card rooms. We have not wavered from our firmly held position that commercial card rooms offering house-banked card games are in clear violation of the California Constitution.

"Just as tribes acted in good faith to negotiate this law, we call on the state to justify our good faith by cracking down on illegal activity at the state's commercial card rooms."