State card room crackdown could cost San Jose - San Jose Spotlight

"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. The City of San Jose has included this revenue in budget forecasts for years, and any loss of revenue would severely disrupt city operations."

"The new regulations target so-called 'player-dealer' card games - such as blackjack, baccarat and Pai Gow - in which players, rather than the casino, act as the 'bank,' paying winners and collecting from losers. Under California law, only casinos located on tribal land may directly operate banked games, in which the casino takes the role of the house."

"Among the changes, the rules impose a time limit on how long one player may hold the role of dealer at a table. The rules also crack down on games that closely resemble blackjack, which is prohibited in non-tribal card rooms."

San Jose city officials sent a letter to California Attorney General Rob Bonta opposing new regulations for card rooms proposed by Bonta and the Bureau of Gambling Control. The regulations, approved by the California Office of Administrative Law and set to take effect April 1, impose stricter rules on player-dealer card games like blackjack, baccarat, and Pai Gow. San Jose's two card rooms, Casino M8trix and Bay 101, generate approximately $30 million in annual tax revenue for the city. Officials warn the regulations would dramatically reduce this revenue, forcing cuts affecting city employees and residents dependent on city services. The new rules include time limits on dealer roles and restrictions on games resembling blackjack, while games without a house, such as poker, remain unaffected.

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