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COMMERCE, Calif. () — Several California cities urged state lawmakers on Tuesday to intervene after new state regulations reshaping cardroom operations prompted warnings of steep financial losses and potential job cuts.
The rules, approved by the California Department of Justice, prohibit games such as blackjack in cardrooms – a game allowed on Native American reservations.
Cities including Bell Gardens and Commerce aim to challenge the changes in court, arguing the regulations threaten municipal budgets and local employment.
Juan Garza, executive director of California Cities for Self-Reliance JPA, said the state must address the financial fallout.
“The state has a responsibility to fix what the state broke. The responsibility now falls on the legislature. Fund the cities,” he said.
Commerce Mayor Kevin Lainez said the Commerce Casino is a critical revenue source, contributing roughly 40% of the city’s annual general fund.
“That is significant. It’s about $30 million a year, and that enables this city to provide quality of life services that we’re really proud to call out, right?” Lainez said.
Native American tribes have supported the new regulations. The Alliance of Sovereign Indian Nations called them a good first step, saying tribes have sought relief for nearly a decade from what they believe are unlawful games offered at cardrooms.
Still, local officials say the economic impact on cities will be substantial.
“Casinos are casinos and not everybody agrees with them, but the truth of the fact is they bring a lot of money for the city and they help the city be what it is,” Commerce resident Mitchell Alcantar said.
Some cities are also asking voters to approve new sales taxes to offset projected losses.
A court hearing on the challenge to the regulations is scheduled for May 21.
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