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About the Commission

General

The focus of the California Gambling Control Commission (Commission) is to act as the regulatory body over:

1. Gambling establishments (cardrooms), and over all persons or things having to do with the operations of gambling establishments,
2. Proposition Players, and
3. Tribal casinos, pursuant to the Commission’s authority under the Tribal-State Gaming Compacts.

The Commission is responsible for setting policy, establishing regulations, conducting audits, making determinations of suitability for gaming employees and other individuals and entities, issuing licenses, acting as the administrator of gaming revenues deposited into the Indian Gaming Special Distribution Fund (SDF) and the trustee over the revenues deposited into the Indian Gaming Revenue Sharing Trust Fund (RSTF), and administering the provisions of the Gambling Control Act and the Tribal-State Gaming Compacts.

The Division of Gambling Control within the Department of Justice (DOJ), is the State law enforcement authority with special jurisdiction over gambling activities within the State of California, and is the entity that conducts criminal background investigations for the Commission on gambling license and work permit applications received by the Commission.

Cardrooms and Proposition Players

The Commission, under the Gambling Control Act, and pursuant to the Governor's Executive Order D-29-01 has jurisdiction over operation, concentration, and supervision of gambling establishments, and over all persons or things (i.e. card tables, gaming equipment) related to the operations of gambling establishments in the State of California. There are approximately 91cardrooms currently in operation.

The Commission’s primary responsibilities related to cardrooms include:

• Making determinations of suitability for the issuance of gambling licenses to owners, related parties, and key employees;
• Issuing work permits to cardroom employees;
• Taking reasonable actions to ensure that no ineligible, unqualified, disqualified, or unsuitable persons are associated with controlled gaming activities;
• Assessing and acting upon certain restricted transactions including ownership changes and lending arrangements;
• Taking reasonable actions to ensure that gambling activities take place only in suitable locations;
• Granting temporary licenses, permits or approvals on appropriate terms and conditions;
• Developing and implementing regulations pursuant to the Gambling Control Act;
• Receiving and analyzing financial reports; and
• Adjudicating recommendations concerning license denials or revocations, or disciplinary actions.

A relatively new component of the California cardroom industry that has become part of the Commission’s regulatory responsibility is the Third-Party Provider of Proposition Player Services (Proposition Player) industry. Proposition Player company services are used to enhance the attractiveness of card games available in the State. The Commission has established a program for the initial registration and subsequent licensure of persons and entities involved through the regulation. The Commission has the responsibility and authority to issue registrations and licenses under the licensing powers of the Gambling Control Act.

Currently, there are 26 Proposition Player companies, and 4 Gambling Businesses (those Proposition Player companies that do not have a contract with a cardroom). These companies have filed over 2,000 applications, which have been processed by the Commission.

Tribal Gaming

The Commission, pursuant to the Tribal-State Gaming Compacts, the Gambling Control Act, the Governor's Executive Order D-31-01 and Governor’s Executive Order D-66-03, has various fiduciary, regulatory and administrative responsibilities related to Tribal gaming and the distribution of revenues to Non-Compact Indian Tribes. There are currently 56 Tribal casinos operated by 55 Tribes.

The Commission’s primary responsibilities related to Tribal gaming and Non-Compact Tribes include, but are not limited to:

• Making suitability recommendations for Tribal key employees, gaming resource suppliers (vendors), and financial sources. Under Governor Schwarzenegger’s new Compacts, the Commission also has the authority to make suitability recommendations for Tribal Gaming Agency members;
• Performing several types of audits, including financial audits of the Tribes’ net win calculations from the SDF and the General Fund, to ensure that payments made to the State by the Tribes are accurate and in compliance with the Compacts. Other audits performed include:
  • Revenue Sharing Trust Fund eligibility;
  • Commercial operation audits to validate that licensed gaming devices are in operation within 12 months of issuance;
  • Gaming Device counts;
  • In-office reviews of quarterly SDF contributions;
  • General Fund payments for additional gaming devices under the new and amended Compacts;
  • Serving as the administrator of the Special Distribution Fund, including the verification of net win;
• Serving as the trustee for the Revenue Sharing Trust Fund, including collecting and accounting for license fees from Tribes, preparing reports, and distributing funds to Non-Compact Tribes based on the approved distribution methodology;
• Conducting field-testing of gaming devices to confirm that they operate and play in accordance with the manufacturer’s specifications and technical standards. The Commission is in the process of implementing a field inspection program to test gaming devices and a technical services program to develop the technical expertise to determine whether gaming devices are functioning appropriately and to ensure the public that gaming is conducted honestly and fairly;
• Ensuring that the allocation of gaming devices among the Compact Tribes does not exceed the allowable number of machines as provided in the Compacts and that the license draws comply with the Compacts;
• Registering gaming manufacturers and distributors; and,
• Developing regulations related to the Compacts with the Tribal-State Gaming Association