COMMERCE, CA – City of Commerce leaders issued a sharp condemnation of the California Attorney General’s final approval of sweeping new regulations on cardroom operations. The regulations, approved by the Office of Administrative Law on February 6, 2026, will effectively ban long-standing "blackjack-style" games and dismantle the "player-dealer" rotation model that has been the industry standard for decades.

Commerce City officials warn that these "unilateral and arbitrary" changes, set to take effect on April 1, threaten the City’s economic foundation, putting thousands of local jobs at risk and jeopardizing 40% of the City’s municipal budget.

"Attorney General Rob Bonta has chosen to ignore the livelihoods of thousands of hard-working families in Commerce in favor of a bureaucratic solution to a problem that doesn’t exist," said Commerce Mayor Kevin Lainez. "The Commerce Casino is not just a business; it is the engine that funds our law enforcement, our fire protection, our parks and community programs. By forcing these radical changes without a single shred of evidence that they improve public safety, the State is essentially balancing its political interests on the backs of our residents."

The City of Commerce warns that the following City services are at risk due to the potential revenue shortfalls created by the Attorney General’s decision:

• Public Safety: Reductions in funding for law enforcement and emergency response times.

• Senior & Youth Programs: Critical cuts to senior nutrition programs and youth scholarship funds.

• Senior & Youth Programs: Critical cuts to senior nutrition programs and youth scholarship funds.

• Community Infrastructure: Postponement of vital road repairs and park maintenance.

• Local Employment: Thousands of layoffs at the Commerce Casino and secondary impacts on surrounding small businesses.

Commerce City Manager Ernie Hernandez was invited to discuss these changes on NPR’s AirTalk with Larry Mantle. “City of Commerce would not be what it is if it weren't for gaming,” said Hernandez. “For years, the Bureau of Gambling Control authorized these games. To suddenly pivot and declare them illegal, without any meaningful engagement with the cities that host them, is a betrayal of the public trust. We are calling on the Attorney General to halt implementation and sit down with us to discuss a real economic impact study. "

When asked how this would affect revenue in the City of Commerce, Hernandez said that revenue from the casino currently accounts for more than 40% of the City’s total income. Under the new California Department of Justice regulations, the City anticipates a significant decline in revenue that will force immediate and painful budget re-evaluations. For over 40 years, the Commerce Casino has operated as the largest cardroom in the world, serving as the single largest contributor to the City’s General Fund.

The City of Commerce stands with a coalition of "Cardroom Communities" across California—including Bell Gardens, Hawaiian Gardens and Gardena—that are exploring all legal and legislative remedies to protect their residents from the fallout of these regulations. Kyle Kirkland, President of the California Gaming Association, estimated that this could lead to a $2 billion dollar economic impact in and affect tens of thousands of jobs within Los Angeles County.

For additional background on the State’s action and its potential regional impact, read the Los Angeles Times coverage:
“Hit me: California’s blackjack ban could bust L.A. card clubs” (February 18, 2026).