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San José Spotlight is an award-winning nonprofit newsroom dedicated to fearless journalism that disrupts the status quo, uplifts marginalized voices, holds power to account and paves the way for change. Meanwhile, news of the restrictions has sparked concern among people who frequent San Jose’s card rooms. Officials with the California Gaming Association have said card rooms throughout the state are preparing legal action in response to the new rules. Among the bevy of rule changes carried out in recent months, the City Council voted in August to reduce annual fees for each card room from $1 million to $857,000. “We make 85% of our revenue off player-dealer style games, and about a third of that is blackjack,” he told San José Spotlight. But Rob Lindo, vice president and director of payid casino australia real money M8trix, said the new rules strike at the heart of his company’s business model.
San Jose Police Department officials said the approval, made without council deliberation, marks the final step in a reform push launched in June.
SAN JOSE IS EASING RESTRICTIONS on its local gambling industry as part of a months-long effort to lighten the regulatory burden placed on the city’s two card houses. “In total, City staff believe these ordinance amendments accomplish the objectives of streamlining regulations while preserving oversight in support of an evolving gaming industry,” the memo signed by Police Chief Paul Joseph reads. San Jose leaders are reducing card room fees and slashing police staff that monitor gambling, marking a turn in the city’s long — at times tense — relationship with casinos. “The City’s cardrooms are stuck paying more taxes without the tables approved by the voters and the corresponding revenue increase,” councilmembers’ June memo reads.
San Jose Spotlight is nonprofit newsroom covering San Jose, Calif. and cities and communities in Santa Clara County. Quick bites, fresh coffee, and artisan snacks available around the clock for players on the go. Chef-crafted dishes featuring locally sourced ingredients, changing with the seasons to reflect the best of Northern California. Whether you’re a seasoned professional or picking up cards for the first time, our welcoming atmosphere and expert dealers ensure every visit is exceptional.
The city also opposed two state laws expanding sports betting, which failed to pass. But the state later squashed that option — passing a bill in 2023 preventing card rooms from expanding through 2043 — while card rooms were still left on the hook for higher taxes. The city will also remove a staff specialist that helps process license renewals, maintain card room employee records, update internal databases and other duties. While the fee reduction loses the city an annual $440,000 in revenue, officials say the staff cuts will rebalance that through cost savings. Chirp’s Halo muscle stimulator puts TENS and EMS in your hands
San Jose business leaders have been urging councilmembers to offer regulatory relief to the city’s gaming industry for years. The proposed rule changes would loosen several local gambling regulations. Councilmembers have said these revisions to the city’s gaming control laws are a necessary response to the fallout from a 2021 decision by state regulators that blocked a voter-backed effort to expand local card rooms. The City Council already passed a separate set of reform measures in August that reduced the annual fees the casinos are required to pay to the city. San Jose leaders had already been pushing to relax local regulations imposed on the city’s card rooms. Without blackjack, among the most popular draws for card rooms, and with the new restrictions for player-dealer games, Lindo predicts casinos could lose customers.
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The legal battle came to an end with a 2020 settlement between the two parties, which made a wealth of regulatory concessions, such as allowing card room owners to play at poker tournaments in their casinos. In 2020, voters approved a ballot measure allowing for the expansion of card rooms at the behest of both casinos, which agreed to paying higher taxes in exchange for more tables. “With resources scarce as they are, a further reduction in fees and less oversight will reduce our ability to proactively manage risk to the community and may result in increased crime, negative social impacts and further burden our understaffed police department.” San Jose police officers who license and inspect the city’s card rooms support the move, but asked councilmembers not to lax oversight any further — citing risks of loan sharking, embezzlement, follow-home robberies and gambling addictions that damage families. In 2020, San Jose voters overwhelmingly passed Measure H, a law that both imposed higher taxes on the card houses and also allowed them to expand the number of card tables they operate.