COMMERCE, Calif. (KABC) — 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.<\/p>\n
The rules, approved by the California Department of Justice, prohibit games such as blackjack in cardrooms – a game allowed on Native American reservations.<\/p>\n
Cities including Bell Gardens and Commerce aim to challenge the changes in court, arguing the regulations threaten municipal budgets and local employment.<\/p>\n
Juan Garza, executive director of California Cities for Self-Reliance JPA, said the state must address the financial fallout.<\/p>\n
“The state has a responsibility to fix what the state broke. The responsibility now falls on the legislature. Fund the cities,” he said.<\/p>\n
Commerce Mayor Kevin Lainez said the Commerce Casino is a critical revenue source, contributing roughly 40% of the city’s annual general fund.<\/p>\n
“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.<\/p>\n
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.<\/p>\n
Still, local officials say the economic impact on cities will be substantial.<\/p>\n
“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.<\/p>\n
Some cities are also asking voters to approve new sales taxes to offset projected losses.<\/p>\n
A court hearing on the challenge to the regulations is scheduled for May 21.<\/p>\n
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