Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities by the Department of Justice. Under existing law, the commission consists of 5 members who are appointed by the Governor, subject to confirmation by the Senate. Existing law requires one member of the commission, among other criteria, to be an attorney with regulatory law experience.

This bill would require one member of the commission, among other criteria, to be an attorney with regulatory or gaming law experience. The bill would make other technical, nonsubstantive changes.

 THIRD READING 

Bill No: AB 1393

Author: Blanca Rubio (D)

Introduced: 2/21/25

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 7/8/25

AYES: Padilla, Valladares, Archuleta, Ashby, Blakespear, Cervantes, Dahle, Hurtado, Jones, Ochoa Bogh, Richardson, Rubio, Smallwood-Cuevas, Wahab, Weber Pierson

ASSEMBLY FLOOR: 67-0, 4/10/25 (Consent) - See last page for vote

SUBJECT: California Gambling Control Commission

SOURCE: Author

DIGEST: This bill modifies the requirement that one member of the California Gambling Control Commission (Commission) be an attorney and a member of the State Bar of California with regulatory law experience, to instead require that one member of the Commission be an attorney and a member of the State Bar of California with regulatory or gaming law experience.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the Commission and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (Bureau), under the California Department of Justice (DOJ).
2. Provides that the Commission is composed of five members who are appointed by the Governor, subject to confirmation by the Senate.
3. Prohibits the appointment of an individual to the Commission if, within two years prior to appointment, the person was employed by or derived substantial income from, any gambling establishment.
4. Prohibits a member of the Commission from engaging in any other business, vocation, or employment.
5. Requires one member of the Commission to be a certified public accountant or a person with experience in banking or finance, one member to be an attorney and a member of the State Bar or California with regulatory law experience, one member to have a background in law enforcement and criminal investigation, and one member to have a background in business with at least five years of business experience or five years of governmental experience, and one member be from the public.
6. Requires the Governor to fill any vacancies on the Commission, subject to confirmation, within 60 days of the date of the vacancy.

This bill:

1. Modifies the requirement that one member of the Commission be an attorney and a member of the State Bar or California with regulatory law experience, to instead require that one member of the Commission be an attorney and a member of the State Bar of California with regulatory or gaming law experience.
2. Makes various technical, non-substantive changes.

Background

Author Statement. According to the author’s office, “gaming laws are often complex, covering a range of issues such as licensing, taxation, consumer protection, responsible gambling, and anti-money laundering. An expert in gaming law can help navigate these complexities and ensure the laws and regulations are applied correctly.”

The author points out that “one of the main roles of regulatory bodies is to protect consumers and ensure fair play. Someone with expertise in gaming law can help the Commission further create policies that safeguard players from unfair practices and ensure their rights are respected. In addition, the gaming industry is evolving quickly with new technologies, such as sports betting, online gaming, e-sports, and mobile platforms. A gaming law expert would help the Commission stay ahead of these trends while making sure new practices are compliant with existing laws or can be properly regulated.”

Gambling Control Act. The Act provides the Commission with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the Commission the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the Commission to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard.

Current law requires the Commission to be comprised of five members. One member is required to be from the public at large, the other four members are required to have the following career backgrounds:

• Certified public accountant or a person with experience in banking or finance.
• Attorney and a member of the State Bar of California with regulatory law experience.
• Background in law enforcement and criminal investigation.
• Background in business with at least five years of business experience or alternatively five years of governmental experience.

This bill maintains that one member of the Commission, among other qualifications, would still have to be an attorney. However, they could have experience in either regulatory or gaming law. Current law excludes gaming law experience, which, the author argues, not only limits the pool of qualified candidates but also prevents individuals with extensive knowledge of gaming laws and overall gambling from applying.

Prior/Related Legislation

SB 864 (Governmental Organization Committee, 2025) requires the Commission to post a public record of every vote on its Internet Web site no later than two business days after the meeting at which the vote was taken. This bill is pending on the Assembly Floor.

AB 77 (Aguiar-Curry, 2025) increases from 10 to 12 members, the membership of the Gaming Policy Advisory Committee and would require the additional members to include representative of academia who possesses knowledge on matter related to gaming and on representative from the Bureau. Additionally, the bill requires the executive director of the Commission, to convene the GPAC at least twice a year, rather than from time to time. This bill is pending on the Senate Inactive File.

SB 1524 (Governmental Organization Committee, 2024) would have reduced the time by which the Governor must fill a vacancy of the Commission from 60 to 45 days. This bill was gutted and Amended to an Unrelated Issue.

AB 2084 (Lackey, 2024) would have reduced the time by which the Governor must fill a vacancy on the Commission from 60 to 45 days. This bill was never heard in the Assembly Governmental Organization Committee.

AB 1167 (Bigelow, 2021) would have reduced the time by which the Governor must fill a vacancy on the Commission from 60 to 45 days. The bill would have also required the Governor to notify the Legislature of the removal of a member of the Commission. This bill was never heard in the Senate Appropriations Committee.

AB 2097 (Gallagher, 2019) would have reduced the time by which the Governor must fill a vacancy on the Commission from 60 to 45 days. The bill would have also required the Governor to notify the Legislature of the removal of a member of the Commission. This bill was never heard in the Senate Governmental Organization Committee.

SB 1313 (Vidak, 2018) would have modified the membership of the Commission by eliminating the requirement that Commission members have specified career backgrounds. This bill was never heard in the Assembly Governmental Organization Committee.

SB 666 (Vidak, Chapter 245, Statutes of 2017) prohibits a member of the Commission, the executive director, the chief, and any employee of the Commission or the department designated by regulation, for a period of three years after leaving office or terminating employment, for compensation, from acting as an agent or attorney for any other person before the Commission or the DOJ, if the appearance or communication is for the purpose of influencing administrative actions, as specified.

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT: (Verified 7/10/25)

None received

OPPOSITION: (Verified 7/10/25)

None received

ASSEMBLY FLOOR: 67-0, 4/10/25

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bennett, Berman, Boerner, Bonta, Bryan, Caloza, Castillo, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Irwin, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Patterson, Pellerin, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas

NO VOTE RECORDED: Bauer-Kahan, Calderon, Carrillo, Chen, Gallagher, Garcia, Hoover, Jackson, Papan, Petrie-Norris, Quirk-Silva, Celeste Rodriguez

Prepared by: Felipe Lopez / G.O. / (916) 651-1530

7/10/25 15:52:56

**** END ****

Date of Hearing: April 2, 2025

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Blanca Rubio, Chair

ABPCA Bill Id:AB 1393 (

Author:Blanca Rubio) – As Introduced Ver:February 21, 2025

SUBJECT: California Gambling Control Commission

SUMMARY: Makes a change to a membership requirement of the California Gambling Control Commission (CGCC) relating to the criteria of an attorney being appointed to the commission. Specifically, this bill:

1) Modifies existing law to require that one member of the CGCC, among other criteria, to be an attorney with regulatory or gaming law experience.

2) Makes other technical, non-substantive changes.

EXISTING LAW:

1. Provides, under the Gambling Control Act (Act), for the licensure and regulation of various legalized gambling activities and establishments by the CGCC and the investigation and enforcement of those activities and establishments by the Bureau of Gambling Control (BGC) within the Department of Justice (DOJ).
2. Establishes the CGCC and grants the CGCC jurisdiction and supervision over gambling establishments, as defined, in the State of California and over all persons or things having to do with the operations of gambling establishments.
3. Specifies that the CGCC consists of five members appointed by the Governor, subject to confirmation by the Senate.
4. Requires one member of the CGCC shall be a certified public accountant or a person with experience in banking or finance, one member shall be an attorney and a member of the State Bar of California with regulatory law experience, one member shall have a background in law enforcement and criminal investigation, one member shall have a background in business with at least five years of business experience or alternatively five years of governmental experience, and one member shall be from the public at large.
5. Requires each member of the CGCC to be a citizen of the United States and a resident of this state.
6. Provides that no more than three of the five members of the commission shall be members of the same political party.
7. Prohibits the appointment of an individual to the CGCC if, within two years prior to appointment, the person was employed by or derived substantial income from, any gambling establishment.
8. Prohibits a member of the CGCC from engaging in any other business, vocation, or employment.

FISCAL EFFECT: This bill is keyed non-fiscal by Legislative Counsel.

COMMENTS:

Purpose of the bill. According to the author’s office, “gaming laws are often complex, covering a range of issues such as licensing, taxation, consumer protection, responsible gambling, and anti-money laundering. An expert in gaming law can help navigate these complexities and ensure the laws and regulations are applied correctly.”

The author points out that “one of the main roles of regulatory bodies is to protect consumers and ensure fair play. Someone with expertise in gaming law can help the CGCC further create policies that safeguard players from unfair practices and ensure their rights are respected. In addition, the gaming industry is evolving quickly with new technologies, such as sports betting, online gaming, esports, and mobile platforms. A gaming law expert would help the CGCC stay ahead of these trends while making sure new practices are compliant with existing laws or can be properly regulated.”

Attracting highly skilled and experienced professionals willing to leave their careers for an appointment continues to be a challenge for the CGCC. This difficulty has occasionally led to vacancies remaining unfilled for extended periods. The additional flexibility in this bill could help address this issue by enabling adjustments to the CGCC's composition, ensuring it better aligns with the demands of the ever-evolving gaming sector.

Background.

Current requirements. Current law requires the CGCC to be comprised of five members. One member is required to be from the public at large, the other four members are required to have the following career backgrounds:

1. Certified public accountant or a person with experience in banking or finance.
2. Attorney and a member of the State Bar of California with regulatory law experience.
3. Background in law enforcement and criminal investigation.
4. Background in business with at least five years of business experience or alternatively five years of governmental experience.

This bill would maintain that one member of the CGCC, among other qualifications, would still have to be an attorney. However, they could have experience in either regulatory or gaming law. Current law excludes gaming law experience, which not only limits the pool of qualified candidates but also prevents individuals with extensive knowledge of gaming laws and overall gambling from applying.

Gambling regulation/enforcement in California. The Act created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Bureau of Gambling Control within the Attorney General’s Office and the five-member Commission by the Governor. The CGCC is authorized to establish minimum regulatory standards for the gambling industry and to ensure that the state gambling licenses are not issued to or held by unsuitable or unqualified individuals. In addition, the CGCC acts as the regulatory body over Tribal casinos, pursuant to the CGCC’s authority under the tribal-state gaming compacts.

Some of the CGCC’s primary responsibilities related to cardrooms and third party providers include: issuing work permits to employees in specific jurisdictions; taking reasonable actions to ensure that no ineligible, unqualified, or unsuitable individuals are associated with gaming activities; granting temporary/interim licenses, permits or approvals; and, adjudicating recommendations concerning license denials, revocations, or disciplinary actions. There are 80 cardrooms currently licensed by the CGCC.

The CGCC, pursuant to the Compacts, the Act, the Governor's Executive Order D-31-01 and Governor's Executive Order D-66-03, also has various fiduciary, regulatory and administrative responsibilities related to Tribal gaming and the distribution of revenues to eligible Indian Tribes. There are currently 65 Tribal casinos open and operated by 62 Tribes.

The Bureau monitors the conduct of gaming operations to ensure compliance with state gambling laws and conducts extensive background investigations of applicants seeking a state gambling license. The Bureau also conducts background checks for all key employees and state gambling license and vendor applications.

The Bureau inspects premises where gambling is conducted, examines gambling equipment, audits papers, books, and records of the gambling establishment, investigates suspected violations of gambling laws, and is ultimately responsible for enforcing compliance with all state laws pertaining to gambling.

Prior legislation. SB 1313 (Vidak) of 2018. This bill would have modified the membership of the CGCC by eliminating the requirement that Commission members have specified career backgrounds and prohibits Commission members from having any participation in, or pecuniary interest in, any gaming establishment. (Never Heard in the Assembly Committee on Appropriations)

SB 666 (Vidak) Chapter 245, Statutes of 2017. Prohibited a member of the CGCC, the executive director, the chief, and any employee of the CGCC or DOJ who works on or supervises gambling issues, for a period of two years after leaving office, from holding a direct or indirect interest in, hold employment with, represent, appear for, or negotiate on behalf of a gambling establishment, gambling enterprise, registrant, or licensee.

AB 1973 (Bermudez), Chapter 854, Statutes of 2006. Among various provisions, changed the eligibility requirements that one member of the CGCC shall be "a certified public accountant with auditing experience" to "a certified public accountant or a person with experience in banking or finance. Additionally, changed the eligibility requirements that one member shall have a background in business with at least five years of business experience "or alternatively five years of governmental experience.

SB 8 (Lockyer), Chapter 867, Statutes of 1997. Repealed the Gaming Regulation Act, and instead enacted the Act, which provided for DOJ to investigate and enforce controlled gambling in the state. It also established the CGCC to regulate gambling in this state and to issue, suspend, or revoke gambling licenses.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531