San โขJose Considers Fee Cuts for Cardrooms,โ Raising Concerns About Oversight
San โJose 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 โฃadministrative burdens,while someโค worry decreased oversight could leadโ to increased crime and negative social consequences.
The San โJose Police Officers’โ Association, in a letter to cityโ councilmembers,โข voicedโ concerns โabout the potential for negative externalities associatedโ with cardrooms. President Steve Slack highlighted risks such as loanโ sharking, embezzlement, follow-home robberies, and gambling addictions that โdamage โฃfamilies. He warned that reducing fees and โoversight, particularly with existing resourceโฃ constraints, “will reduce our ability to proactivelyโ manage risk to the community โฃand may result in increased crime,โค 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 โคH, allowing cardroom expansionโ in exchange for increased tax payments. Though, a 2023 state bill prevented this expansion through 2043, โleaving the casinos still obligated to pay the higher taxes. San Jose also โฃopposed two failed statewide initiatives โฃinโฃ 2022 that would have expanded sports โขbetting.
Bay 101 was previously involved in a nearly decade-long lawsuit โฃwith the city regarding โคwhat it deemed “unconstitutionally excessive” government fees. This dispute concluded with a 2020 settlement granting the cardroom regulatoryโฃ concessions,including allowing owners to participate in poker tournaments within their casinos. Former Mayor Sam Liccardo, now โฃa congressman, publicly opposed the settlement due to his concerns about โthe risks of gambling addiction and its impact on families.
As part of the proposed changes, the city is reviewing potential reductions in servicesโฃ likeโฃ observed patron monitoring, betting limitations, and provisions stimulating play,โค with officials suggesting these rulesโ can โขbe simplified โwithout compromising oversight.
Requests โfor comment from representatives of Bay 101, Casino M8trix, and โthe California Gaming Association were not returned.
This story originally appeared in San Jose Spotlight.
