San Jose Considers Fee Cuts for Cardrooms, Raising Concerns About Oversight
San Jose is considering reducing fees for its two licensed cardrooms, Bay 101 and Casino M8trix, a move that has sparked debate over potential impacts on community safety and police resources. City officials state the reductions aim to lessen administrative burdens,while some worry decreased oversight could lead to increased crime and negative social consequences.
The San Jose Police Officers’ Association, in a letter to city councilmembers, voiced concerns about the potential for negative externalities associated with cardrooms. President Steve Slack highlighted risks such as loan sharking, embezzlement, follow-home robberies, and gambling addictions that damage families. He warned that reducing fees and oversight, particularly with existing resource constraints, “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.”
The city’s relationship with the cardrooms has been complex in recent years.In 2020, voters approved a ballot measure, Measure H, allowing cardroom expansion in exchange for increased tax payments. Though, a 2023 state bill prevented this expansion through 2043, leaving the casinos still obligated to pay the higher taxes. San Jose also opposed two failed statewide initiatives in 2022 that would have expanded sports betting.
Bay 101 was previously involved in a nearly decade-long lawsuit with the city regarding what it deemed “unconstitutionally excessive” government fees. This dispute concluded with a 2020 settlement granting the cardroom regulatory concessions,including allowing owners to participate in poker tournaments within their casinos. Former Mayor Sam Liccardo, now a congressman, publicly opposed the settlement due to his concerns about the risks of gambling addiction and its impact on families.
As part of the proposed changes, the city is reviewing potential reductions in services like observed patron monitoring, betting limitations, and provisions stimulating play, with officials suggesting these rules can be simplified without compromising oversight.
Requests for comment from representatives of Bay 101, Casino M8trix, and the California Gaming Association were not returned.
This story originally appeared in San Jose Spotlight.
