Not So Fast
A California judge ruled that cardroom restrictions on player-banked games imposed by Attorney General Rob Bonta's office exceeded its authority.
The Bulletin Board
THE LEDE: California cardrooms score legal victory over tribes.
ROUNDUP: A look at the stories you may have missed.
AROUND the WATERCOOLER: What if… LeBron played soccer.
STRAY THOUGHTS: Size matters.
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The Lede: California Cardrooms Score Huge Legal Victory
There is an incredibly important legal battle playing out in California that has nothing to do with prediction markets, sweepstakes, or online gambling. The fight over player-banked games at California’s licensed cardrooms is a longstanding one, pitting the cardrooms against the state’s gaming tribes.
For those that need to catch up on this complicated topic, here is the backstory.
Tribes scored a significant victory last year, when Attorney General Rob Bonta first proposed new regulations that would all but end the practice of player-banked card games (blackjack and baccarat) at licensed cardrooms, by making the following changes:
Player-Dealer Position Restrictions: The regulations require the player-dealer position in cardroom games to be held by a person physically seated at the table. Third-Party Providers of Proposition Player Services (TPPPS) not in this role cannot settle wagers, disrupting the current model where TPPPS employees often act as proposition players to facilitate games.
Blackjack-Style Game Regulations: The new rules would only permit blackjack games without a “bust” feature or a 21-point target, differentiating them from traditional blackjack offered at tribal casinos or elsewhere. Basically, cardrooms would not be allowed to offer blackjack.
The new rules were officially adopted earlier this year and cardrooms immediately sued to stop enforcement.
San Francisco Superior Court Judge Richard Darwin issued a preliminary injunction in May, and on June 30, the cardrooms received some very good news.
Judge Darwin ruled that the new regulations imposed by Attorney General Rob Bonta’s Bureau of Gambling Control exceeded its authority by bypassing the legislature.
From a press release from the California Gaming Association:
“The Court invalidated the regulations on the ground that the Bureau (a division of the California Department of Justice) lacks authority to restrict games on a statewide basis. The ruling affirms what California cardrooms, local governments, employees, and communities have argued throughout this process: the Bureau is responsible for enforcing California’s century-old gaming laws - not rewriting them.”
Neither the Attorney General’s office nor California tribes has issued statements following the decision, but the situation remains fluid, with potential appeals and further litigation likely.
Roundup: So Much News; So Little Newsletter Space
Alberta online gambling regs codified as launch draws near [Canadian Gaming Business]: The Alberta online gambling era is set to begin on July 13, with roughly 50 operators already registered and approved by the province. “In an update on June 18, AGLC codified what it expects from its commercial operators when it comes to advertising and marketing. The unsurprising headline is that it closely resembles the regulations Ontario has in place, including bans on most advertising of bonuses and promotions and restrictions on the use of celebrities and athletes.”
VGW founder resigns [Casino Reports]: “Six months after announcing his leave of absence, troubled VGW CEO and founder Laurence Escalante’s absence became more permanent Friday when the massive sweepstakes gaming company he long helmed announced his resignation. Escalante, 44, was arrested in Perth, Australia, in January and charged with aggravated assault, domestic violence, destruction of property, and possession of illegal substances with intent to sell or supply.”
Rivalry CEO resigns [Canadian Gaming Business]: For altogether different reasons, “Rivalry Co-Founder Steven Salz has resigned as CEO of the struggling Toronto-based gaming and betting company. Salz will remain on the board of directors but his exit leaves the company, which ceased all gaming operations in February, without clear leadership.” Salz was a guest on the Straight to the Point Talking Shop Podcast back in March 2024:
Episode 2: Next-Gen Games and Authentic Marketing with Steven Salz
In Episode 2 of the Talking Shop Podcast, I was joined by Steven Salz, the CEO of Rivalry, a betting platform with an emphasis on esports.
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Around the Watercooler
Social media conversations, rumors, and gossip.
The US is out, and the What-Ifs have begun:
This is an argument that has been going on for years:
There are very few conversations more frustrating than sports “what-ifs.”
One of my all-time favorites is: What if Michael Jordan played in today’s NBA or LeBron played in the 1970s? Which is right up there with Bruce Lee fighting in the UFC-type debates.
These debates are almost completely useless, but they do provide an avenue into the minds of the participants (and therefore humans), most of whom use the all-too-common debate tactic of equivocation, where they appear to be debating the same topic, but they’re actually discussing two different things because each is using a different underlying definition, standard, or scope. The argument goes on forever, because both are right under their specific point of view.
Essentially, one argues that modern players are too big and strong for players of the past, while the other argues the best athletes of the past would have access to modern training and nutrition if they played today and would be just as dominant — a 230-pound Michael Jordan with an extra 2 inches of leaping ability is a scary thought.
My new favorite is: What if the US’s best athletes focused on soccer instead of basketball or football?
This is certainly an interesting thought experiment, but the people who think LeBron James would excel at soccer if he’d only focused on it are missing a key element of soccer; it’s not a big man’s game — soccer players average about 6’ and 170 pounds (with most falling between 5’ 9” and 6’ 1”). There are always outliers, but bigger, faster, stronger doesn’t apply to every sport.
There’s a reason first basemen are left-handed, volleyball liberos are short and agile, elite soccer goalies are tall (typically 6’ 4”+) with longer than usual wingspans, and certain positions in the NFL have an archetypal body.
There’s a reason soccer players over 6’4” are rare (goalies excluded), and musclebound soccer players even rarer, and it has nothing to do with the best athletes choosing different sports. Those body types and athletic traits don’t fit the physical demands of soccer. Notice you don’t see too many 6’ 4” cornerbacks, and you don’t get too many 6’ 8” hulks in soccer. It’s not because they don’t exist in Europe (they do), it’s that they lack the physical skills to be elite soccer players.
The best argument for US not sending its top talent onto the pitch would be NBA guards and NFL defensive backs (average around 5’ 11” and 190 pounds) and slot receivers, not LeBron James. All that said, can you imagine LeBron fighting for position in the box on corner kicks?
And what do professional athletes think of soccer? Opinions are divided (notice Gronk says DBs and Wide Receivers would be great soccer players):
Stray Thoughts
One of the sayings I use a lot at the dojo is: Every technique has a weight limit.
Meaning, no matter how good you are at it, or how effective the technique can be, if someone is much bigger and stronger it’s not going to work.
The same holds true when it comes to business. Sometimes the incumbent is too entrenched, no matter how plucky the upstart is.