San Jose Casino Regulations Face Further Delay Amidst Industry Push for Relief
San Jose’s efforts to modernize regulations governing its two card rooms, Casino M8trix and Bay 101 Casino, have hit another snag, as city officials postponed a vote on proposed changes for the second time in as many weeks. The delays come as local business leaders advocate for easing restrictions on the gaming industry following a setback from state regulators.
The proposed reforms, initially slated for discussion on Tuesday but now deferred to February 3rd, represent the latest step in a broader effort launched in June to reduce the administrative burden on the city’s licensed card houses. Backers of the changes argue they will foster a fairer regulatory environment without compromising public safety, while also acknowledging the significant tax contributions – totaling tens of millions of dollars annually – made by the casinos to the city’s coffers.
The package of five rule changes would significantly loosen existing local gambling regulations. Specifically, the proposals would extend the timeframe casinos have to report illegal activity, double the maximum number of betting squares per table from 10 to 20, and eliminate limits on the number of tournaments held each year. Additionally, card rooms would be permitted to offer complimentary or discounted food and non-alcoholic beverages, and a 20-hour time limit intended to curb excessive gambling would be repealed.
According to a memo outlining the proposed changes, current enforcement of the 20-hour limit is largely ineffective, as few patrons actually reach that threshold. “In total, City staff believe these ordinance amendments accomplish the objectives of streamlining regulations while preserving oversight in support of an evolving gaming industry,” stated the memo, signed by Police Chief Paul Joseph.
These proposals build upon earlier reforms approved in August, which reduced annual casino fees from $1 million to $857,000 and eliminated two civilian positions within the San Jose Police Department’s Division of Gaming Control. Supporters maintain these adjustments are “revenue neutral” for the city, simply removing redundancies with existing state enforcement measures.
The push for regulatory relief stems from a 2021 decision by the California Gambling Control Commission that blocked a voter-approved expansion of local card rooms. In 2020, San Jose voters overwhelmingly passed Measure H, which aimed to both increase taxes on the card houses and allow for more card tables. However, the state commission determined the city’s card rooms had already reached the maximum number of tables permitted under state law.
“The City’s cardrooms are stuck paying more taxes without the tables approved by the voters and the corresponding revenue increase,” a June memo authored by Councilmembers Bien Doan, Pamela Campos, and George Casey explained. While the councilmembers stopped short of endorsing a freeze on the tax hike – which has generated an estimated $15 million in additional revenue annually – they emphasized the need for a balanced approach.
The reason for the latest delay remains unclear. The city manager’s office directed inquiries to the San Jose Police Department, which confirmed it did not request the deferral. Representatives from Bay 101, Casino M8trix, and the California Gaming Association did not respond to requests for comment.
The ongoing debate highlights the complex interplay between local revenue needs, state regulations, and the evolving landscape of the gaming industry in San Jose. As the February 3rd vote approaches, stakeholders will be closely watching to see if the city will move forward with reforms aimed at providing regulatory relief to its card rooms.
