San Jose officials are urging California regulators to rescind new rules for the state’s card rooms, warning of dire economic fallout if restrictions take effect as planned in the coming months.
In a Feb. 19 letter sent to Attorney General Rob Bonta, city officials warned the regulations, which set stricter rules for certain types of gameplay, would devastate San Jose’s two card rooms — as well as the city’s finances. San Jose officials said the city takes in roughly $30 million in annual tax revenue from the casinos, known as Casino M8trix and Bay 101.
“The regulations would dramatically reduce the tax revenue that the city receives from its licensed cardrooms, forcing cuts that would affect both City employees and the residents who rely on these vast services,” Emily Lam, who directs the Office of Administration, Policy and Intergovernmental Relations, wrote in the city’s letter. “The City of San Jose has included this revenue in budget forecasts for years, and any loss of revenue would severely disrupt city operations.”
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Bonta, along with the Bureau of Gambling Control, proposed the changes, which were approved by the California Office of Administrative Law earlier this month. The changes begin to take effect April 1…