San Jose has lengthy had a love-hate relationship with its two casinos.
However with these companies threatened by new state rules, metropolis officers are contemplating becoming a member of a bunch of different California municipalities to attempt to stave off the brand new guidelines. The explanation comes all the way down to easy {dollars} and cents — San Jose’s two card rooms, Bay 101 and On line casino M8trix generate tens of millions of {dollars} yearly for town.
“The underside line for us is that card rooms actually do present town with some wanted income that goes into our normal fund and gives fundamental metropolis companies,” stated Bena Chang, assistant to San Jose Metropolis Supervisor Dave Sykes.
Town is contemplating formally becoming a member of the California Cities Gaming Authority, a so-called joint-powers authority that represents cities with medium-sized card rooms. To be a member, San Jose should pay $30,000 in annual dues. The Metropolis Council will vote on the proposal at its Jan. 5 assembly.
The authority has shut relationships with main card room stakeholders and legislative leaders that might rally help for the casinos, stated Lee Wilcox, town supervisor’s chief of workers, in a memo. Among the many authority’s members are the city of Colma and metropolis of Gardenia.
“The authority focuses on card room points and has shut relationships with the most important card room stakeholders together with legislative leaders on card room points and the state administration,” Wilcox wrote. “Becoming a member of the authority would additionally enable town to work extra formally with different jurisdictions that share card rooms pursuits.”
Town’s card room tax generated roughly $18.9 million from 2018 to 2019. The cash went to town’s normal fund and supported public security, libraries and parks, in keeping with metropolis paperwork.
However following COVID-19 closures, estimated income from the tax plummeted to $13.5 million.
The cardboard rooms have fallen sufferer to fluctuating COVID-19 rules. Bay 101 and On line casino M8trix invested cash in shopping for tents and heaters after getting the green light to reopen outdoors in September. However their funding was all for naught as state mandates following an increase in coronavirus instances compelled the companies to shut once more.
However COVID-19 will not be the one risk to Bay 101 and On line casino M8trix, Chang stated. The state is contemplating tightening rules on sure video games within the close to future.
The Bureau of Gaming Management, which regulates playing within the state, has indicated that it could ban video games that look “too comparable” to 21 and Blackjack, Wilcox stated. State regulation permits solely tribal casinos to supply these video games, he stated.
California regulation additionally prohibits video games the place a card room has an curiosity within the end result, in keeping with a memo from Wilcox. Amongst such video games are blackjack, three-card poker and pai gow poker. Tribal casinos, topic to completely different guidelines, are allowed to supply these video games.
Many card rooms provide modified variations of those video games, however the Bureau of Gaming Management might put restrictions on them that might hinder harm enterprise.
If these video games have been to be stripped from Bay 101 and On line casino M8trix’s lineup, they may lose an estimated $25.7 million in annual gaming income along with 150 jobs, in keeping with Wilcox. The transfer might even drive the casinos to shut.
Even so, Mayor Sam Liccardo plans to vote towards the proposal to affix the gaming authority. Liccardo has long-opposed gambling for its damaging social results and was the lone dissenter on the council in a current vote to place a measure on the poll so as to add extra tables to card rooms.
“I haven’t modified my opposition to increasing gaming in San Jose, as evidenced by my August vote towards placing the cardboard membership growth measure on the poll,” Liccardo stated. “I’ll oppose this and different efforts to develop gaming on this metropolis.”
If lawmakers vote to affix the board, they need to elect one councilmember to serve on the authority’s board and attend conferences. One other councilmember would function an alternate.
The San Jose Metropolis Council will meet Jan. 5 at 1:30 p.m. To look at, go to San Jose’s YouTube web page.
Contact Carly Wipf at [email protected] or observe @CarlyChristineW on Twitter.
