Poker Writer
Two Los Angeles-area cities with prominent cardrooms are proposing a sales tax increase intended to offset the financial impact of California’s recent commercial blackjack ban. The ban, which was abruptly instituted by Attorney General Rob Bonta in February, would devastate the local economies of Commerce and Bell Gardens, according to officials in those cities.
Bonta has reportedly declined to meet with city officials and has not addressed their concerns.
Commerce and Bell Gardens both host two of the most popular cardrooms in California, Commerce and Bicycle. The mayors of each city joined officials to announce plans to raise the sales tax by 0.25 percentage points.
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Commerce City manager Ernie Hernandez called the ban on blackjack “the threat to our city.” The new cardroom regulations begin in April, though rooms have until the end of May to submit plans to adhere to the rules.
The tax increase will be put up for a vote on a June ballot. City officials hope to recoup up to $4.5 million for Commerce, helping slightly ease the projected loss of $8-$18 million.
Commerce Mayor Kevin Lainez emphasized how the ban would greatly adversely impact his community, which is majority-Hispanic.
This is a terrible situation. We are a vulnerable community. We are a community of color, and if you look at the cardroom cities all across the state, they are also communities of color.
In Los Angeles County, cardrooms bring more than $2 billion into the economy and create close to 10,000 jobs. Those jobs are now at risk of mass layoffs.
Bell Gardens, a historical area with L.A.’s oldest house and just over 36,000 residents, could lose up to 40% of its general fund. Again, the tax increase could recoup about a third of those losses.
The Parkwest Bicycle Casino (formerly the Bicycle Casino) in Bell Gardens has 62 tables in the poker room and employs many dealers. Commerce Casino has 122 tables.
