June 6, 1995 

Richard M. Milanovich, Chairman 

Agua Caliente Band of Cahuilla Indians 

960 E. Tahquitz Way 

# 106 

Palm Springs, CA 92262 

Dear Chairman Milanovich: 

A number of California Indian tribes have expressed concern that 

Bulletin No. 95-1, an advisory opinion on the classification of 

banking card games under the Indian Gaming Regulatory Act (IGRA), 

could result in the classification of certain card games as class 

I11 gaming even though such card games are not considered banking 

games under California law. 

We are aware of state court decisions that have determined that 

certain Asian card games, pai gow, pai gow poker, and pan 9, are 

not banking games within the meaning of California law if played 

using a certain betting format. Citv of Bell Gardens v. Countv 

of Los Anseles, 231 Cal. App. 3d 1563, 283 Cal. Rptr. 91 (1991); 

Huntinston Park Club Corporation v. Countv of Los Anseles, 206 

Cal. App. 3d 241, 253 Cal. Rptr. 408 (1988). In Citv of Bell 

Gardens, the California Court of Appeals for the Second District 

found that pai gow, pai gow poker, and pan 9 shared the same 

betting format: 

The position of dealer rotates systematically among the 

players and each player has the opportunity to act as 

the dealer for two consecutive rounds. The player/ 

dealer makes the initial bet, and the other players bet 

againsp) him. The playerldealer pays off winners and 

coll dts from losers, but only until the playerldealer 

wins or loses his initial wager. Thereafter, the round 

of Jay terminates even though there are remaining 

pla rs at the table who have winning or losing hands. 

Accordingly, the player/dealer is not required to pay 

all winners, and the playerldealer may only collect 

from losers up to the amount the playerldealer wagered. 

231 Cal. App. 3d at 1566. 

In promulgating a definition for I1house banking1'', the National 

Indian Gaming Commission (NIGC) was guided in large part by 

California case law. "Banking game has come to have a fixed and 

accepted meaning: the 'housef or 'bankr is a participant in the 

game, taking on all comers, paying all winners, and collecting 

from all losers.11 Sullivan v. Fox, 189 Cal. App.3<d 673, 678, 235 

Ca1.-Rptr. 5, 8 (1987). Compare this definition with 25 C.F.R. 

1850 M STREET, i\l.W., SUrrE 250 VgASHINGTON, D C. 20036 TEL.: 202-632-7003 FAX 202-632.7066 
S 502.11.' To the extent that pai gow, pai gow poker, pan 9, and 

other card games (excluding blackjack, chemin de Eer, and 

baccarat) are played using the above described betting format, it 

is the view of the NIGC that such games are not banking games as 

that term has been defined in the regulations of the NIGC. 

However, as the court noted in city of Bell Gardens, I8if a rule 

change [for pai gow] permitted a player to take all comers, pay all winners, and collect from all losers, the game would, under 

the Sullivan definition, be a banking game." 283 Cal. Rptr. at 

94. Likewise, such a rule change would make pai gow or such 

other card games house banking games as that term is defined in 

regulations of the NIGC. 

This clarification in no way alters the determination of the NIGC 

that player banked blackjack is a banking card game thereby 

falling within class I11 gaming. The IGRA expressly prohibits 

the game of blackjack from class I1 gaming. 25 U.S.C. 

§ 2703 (7) (b) (i) . If you have any questions, please do not hesitate to contact the 

legal staff at (202) 632-7003. 

Sincerely, 

Harold A. Monteau 

Chairman 

"House banking means any game of chance that is played 

with the house as a participant in the ,game, where the house 

takes on all players, collects from all losers, and pays all 

winners, and the house can win.