Leaders of several cities in Los Angeles County that heavily depend on cardroom taxes are calling the closures ordered this week by health officials the ‘final nail’ in their city budgets.
The city managers and mayors of Hawaiian Gardens, City of Commerce and Bell Gardens held a press conference on Monday, December 1 to beg the LA County Board of Supervisors to allow the seven card clubs that operate in their jurisdictions to reopen with beefed up safety measures.
The cities are millions of dollars in the red from the three closures since March. Moreover, the cardrooms have collectively spent millions of dollars installing six foot high clear plastic dividers, tents, outdoor air conditioning, temperature checks, masks for all, constant sanitation of cards and chips, touchless games and other measures to meet county protocols two months ago.
County health officials ordered the new return to near lockdown on the day after Thanksgiving. Among activities banned are most public and private gatherings, which include casinos. The orders are in effect until December 20.
County Health Director Barbara Ferrer defended the extreme measures. “We know we are asking a lot from so many who have been sacrificing for months on end and we hope that L.A. County residents continue following Public Health safety measures that we know can slow the spread. Acting with collective urgency right now is essential if we want to put a stop to this surge.”
The casino city leaders met at one of the empty casinos, the Commerce Casino. Hawaiian Gardens City Manager Ernie Hernandez, who also spoke for California Cities for Self-Reliance declared, “Cardrooms have not been identified as a primary source of infections. Communities of color rely heavily on cardroom gaming.”
He called the science into question, noted that LA County concedes that it has no data on transmission of Covid-19 at cardrooms. He said his city, which gets 70 percent of its revenue from casinos, has laid of 40 percent of its staff.
Hernandez added, “If these closures continue, we will cut essential services. These are basic government services that people depend on for quality of life. For the sake of our community’s health, our future and thousands of public and private sector jobs, I implore the Board of Supervisor to make the right decision.”
The Gardens Casino’s general counsel Keith Sharp pointed out that the county’s casinos have spent millions on safety protocols and installations since October. He urged the County not to employ a one-size fits all solution. He said, “We recognize that this surge is serious and we plan to continue to do our part if permitted to do so. Shutting us down won’t prevent the surge but it will mean thousands of people out of work, harming cities and putting more lives in peril.”
Sharp said Hawaiian Gardens has lost more than $10 million in taxes from casinos so far in 2020. He expects revenues to drop 85 percent by the end of the year.
The city of Commerce doesn’t depend to quite that degree on casinos. Gaming provides 40 percent of revenues. Nonetheless the city has lost more than $12 million from the Commerce Casino so far this year according to John Griffo, director of business development for the casino. This will devastate the city’s youth, senior and library programs, he said.
Commerce Mayor Ivan Altamirano declared, “We’ve lost over $13 million already and that impacts public safety, it impacts our programs for the community so we really need this casino to get up and going.”
The closure also impacts the Commerce’s employees. During normal times the casino has 2,500 employees. Just before the latest shutdown it had 1,000 workers. They will be furloughed as well.
The Gardens Casino has gone from its pre-pandemic level of 2,000 employees to 600 this week before the shutdown.
When the Bicycle Casino closed it deprived Bell Gardens of half of its revenue according to Mayor Alejandra Cortez. She too foresees reductions in city services and additional layoffs of city employees. She declared, “This could be the last nail for our businesses and city. This is more than just gaming. It’s a vital resource to our community.”
She added, “So far, our city has projected an approximate $9 million in revenue loss so far. We have already eliminated police officer positions, reduced employee salaries and reduced our availability for other important services for children and seniors.”
The casinos are also a resource for their patrons. One such patron, Elaine Lam, who has visited the Gardens for 18 years from Westminster, told the Los Angeles Daily News: “I can’t stay home. I stay home, I go crazy.”
