California Attorney General Rob Bonta is redefining tech regulation through aggressive privacy enforcement, AI oversight, and a regulatory style that demands compliance.
Attorney General Rob Bonta's Bureau of Gambling Control recently attempted to ban blackjack at private cardrooms, a move that would have shifted revenues to tribal casinos. San Francisco Superior Court Judge Richard Darwin issued a preliminary injunction blocking the ban, but the dispute is far from settled. The regulations threatened to wipe out tax revenues that many local governments rely on, exposing the high stakes in California's gambling wars.
“It keeps the fight going; it keeps the two very powerful interests caring about what goes on at the Legislature, and therefore it keeps the campaign contributions moving as well,” said former Democratic Assemblyman Mike Gatto.
This episode reveals Bonta's willingness to wade into complex industry battles with a heavy hand. Tech companies should note the pattern: Bonta's office uses regulation to shape markets, often favoring established players over disruptors. The gambling stalemate benefits politicians who collect donations from both sides, but for tech firms, it signals that Bonta's regulatory style is aggressive and politically astute.
Bonta has turned the California Consumer Privacy Act (CCPA) into a potent weapon. His office has issued fines and demand letters to major tech companies for non-compliance, including a notable settlement with Sephora. The 2023 California Privacy Rights Act amendments expanded consumer rights and increased penalties for data breaches, reflecting Bonta's push for stronger protections.
Tech companies must adapt to Bonta's proactive enforcement strategy or face reputational and financial consequences. The Sephora settlement demonstrated that even well-known brands are not immune, and the precedent is clear: California is the de facto privacy regulator for the nation.
Bonta has joined multistate investigations into AI bias and privacy risks, issuing advisories on algorithmic accountability and deepfake misuse. He has supported legislation requiring AI transparency and risk assessments, such as the 2024 AI safety bill mandating disclosure of training data and bias testing. His office is building a specialized AI enforcement unit to monitor industry self-regulation and ensure compliance with existing laws, particularly in healthcare and hiring algorithms.
California’s AI oversight is likely to become a template for other states, much like the CCPA inspired privacy laws nationwide.
For tech companies, this means investing in compliance infrastructure and ethical AI practices is no longer optional. Bonta's team is scrutinizing algorithmic hiring tools and medical AI applications, areas where bias can cause direct harm. Companies that fail to conduct thorough bias testing may face enforcement actions that could include injunctions.