A Big Collision on the Horizon in California’s Gambling Industry

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A Big Collision on the Horizon in California’s Gambling Industry

Gambling operations can be one of the most lucrative businesses out there. However, it is obvious that the more profitable a business is the more prone it is to scams and illegal activity.

It doesn’t make a difference whether or not they are in a heavily regulated environment, they can still easily squeeze through the legal gaps. California is no different. The state doesn’t feature rules that are too strict in regards to gambling, however that alone cannot be attributed to its epidemic of illegal gambling rooms. It is also important to note that Native Americans have exclusive deals in terms of gambling because they fall under different jurisdictions. However, the amount of these illegal gambling rooms have forced them to go to the regulators for help.

Regulators to the rescue

The regulators answered the call and have already started preparations for the crackdown. A local reporter CDC Gaming Reports has heard from the director of the Bureau of Gambling Control (BGC), that the state is preparing a campaign against games that are similar to the infamous 21/blackjack. The director Stephanie Shimazu has already stated that these types of games are prohibited by law within the borders of California, and operating them illegally will not be tolerated.

The BGC will also give enough time to the cardrooms to prepare for the inspections that are to come. According to the state law, they need to be notified a week before the procedures begin. Some in the government disagree with this law as it gives the criminals time to think of a way out, they believe that it needs to be quick and sudden.

There is also a trend in California. A trend that includes casinos outsourcing their player-dealers. There are already a lot of third party proposition player firms or TPPP for short. Licenses have already been given out to these firms which help the gambling operators to feature high-stakes table games that do not violate the state’s laws

California Native Tribes

The Native Tribes in California hold various exclusive licenses for their gambling operations. The reason behind this is that their reservations of communities fall under completely different rules and regulations, therefore giving them a lot more freedom in their gambling dealings. The BGC has been having this debate with the tribes for more than six years. The main subject was always the types of games and the use of TPPPs, but many expect that the BGC will fail this year as it had been failing this past 6 years.

Even though they’ve had their differences in the past, the Native Tribes and the card rooms have come to an understanding, that the BGC’s actions are going to harm both of them. They have decided to create a joint lawsuit against the organization in hopes of retaining their current privileges and business model.

The state may have to look into this as well, as a potential misunderstanding with the tribes could cost them 63 casinos and over 50,000 jobs, further flinging their economy into chaos. Even worse would be the loss of a $9 billion industry that keeps on giving every single year, with more and more revenue, meaning more and more taxes.

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