
A small town in California has declared its support for state cardrooms and the economic impacts they have on the state. Per a recent article, Colma, California, has a living population of just 1,507 in the most recent census, although it boasts that 1,000 times that many people are buried in its famous cemeteries. With that in mind, as the dead do not pay taxes, Colma stands out as one of the smaller communities hosting a cardroom, economically speaking. That makes it likely to also be one of the hardest hit, the same report notes. However, even larger municipalities have said they will feel the pinch. This includes Commerce and Bell Gardens, both located in Los Angeles County, which will ask voters to approve a 0.25% sales tax in November to compensate for the lost revenue.
In this article, SBS will be going over the latest gaming news coming from the Golden State, along with some additional notes and thoughts regarding wagering in California.
Per the same report, the cardrooms in the Golden State have aimed an injunction at the Bureau of Gaming Control, which they say overstepped its authority in banning blackjack-style games. Formal declarations of support for the injunction include city managers from a variety of cardroom host communities. Some say that reduced business at local cardrooms could lead to as much as a 15% reduction in their municipal governments’ operating budgets.
Additionally, the report says, the Bureau finalized its new rules in February. It made two important changes aimed at settling longstanding grievances from tribal casinos, which believe the cardrooms infringe on their exclusivity over casino gambling. One change impacts how the cardrooms implement the mandatory “player-dealer” position. This is necessary to satisfy the requirement that the games not be house-banked. Cardrooms had been using paid, third-party “prop” players to take on the role. However, they will now need regular, uncompensated players to volunteer. However, the current lawsuit involves another change, which is a ban on blackjack, twenty-one, and similar games. The California Gaming Association (CGA), which represents the cardrooms, argues that the Bureau was never actually given the authority to ban specific games, least of all ones with a long history of being allowed in the cardrooms.
Covered in the article, the preliminary injunction, if granted, would stop the Bureau from enforcing the new rules until the legal challenge is complete. Receiving such an injunction requires the plaintiff to show both that they are reasonably likely to win the case and that there would be “irreparable harm done” in the meantime if the defendant were allowed to persist in their planned course of action. Over two dozen third parties offered formal declarations of support for the CGA, including nine city managers. None of those contacted by a national outlet for comment responded, however.
The motion for preliminary injunction pleads with the court: “This court must not allow the Bureau’s unlawful regulations to take effect before judicial review. The Bureau itself projects that cardrooms will lose half of their patrons as a result of the Regulations. Those patrons will take their business to establishments not subject to the Bureau’s rules – including Tribal casinos and underground gambling dens – and will not return. Some businesses will not survive that devastating consequence.”
The injunction further elaborates: “Others will survive but only after incurring painful cuts, including the destruction of workforces with specialized skills that they have invested in training and assembling. Local communities will suffer not only from the loss of living-wage jobs but also from sharp reductions in municipal tax revenue, putting vital services at risk. None of those can be easily reversed, and none can be remedied through monetary damages from the State, which is protected from such damages by sovereign immunity.”
According to the report, Dan Barros, the city manager for Colma, wrote that the blackjack ban could reduce his town’s operating budget by 15%. Colma, located near the San Francisco Airport, is less populated than surrounding communities because much of its land area is taken up by cemeteries. Because of the limited economic activity in the area, the town’s operating budget is a modest $20 million, and Lucky Chances Casino contributes a significant portion of that. All cardrooms depend heavily on blackjack, but the degree can vary. Barros estimates that the loss of blackjack could cut Lucky Chances’ revenue by 70%, even higher than the industry-wide 50% estimated by the CGA. Of course, it remains to be seen how this will play out, but this will certainly not be the last time we will hear about card rooms in California.
Once you are all up to speed in relation to the latest gambling updates coming from the Golden State, make sure to check out the excellent array of information for you over at SBS. Of course, for even more analysis on the state in question, the California betting sites guide is a must-read resource for qualified patrons looking for more insights. Moreover, for those interested in maximizing their wagers (and who qualify), the best bonus betting sites breakdown is a must-read page that covers a variety of welcome bonus offers customers can peruse. Finally, the BetOnline sportsbook review rundown is a fantastic resource covering all of the latest at that outlet. Here, you can learn more about what the site offers and see if you qualify.