Sacramento Approves Casino for Elks Tower

The historic Elks Tower (l.) in downtown Sacramento could become the site of a new cardroom called the Elks Casino. It was awarded a conditional use permit last week, but must still fight a lawsuit brought by the competition.

The Sacramento City Council last week approved a conditional use permit for a 24-hour casino card room called the Elks Casino to operate in the historic 14-story Elks Tower. The casino would also have a lounge, bar, restaurant and “sprits library” selling vintage beverages.

The decision is being appealed by the owners of two competing card rooms, Parkwest Casino Lotus and Capitol Casino. They have sued the city to prevent the proponent from taking over the card room license of Casino Royale, which operated until 2014, when it was closed by the California Bureau of Gambling Control for failing to pay owed winnings to some of its patrons. The owners later paid a settlement.

Because the casino did not operate for two years, its competition argues that its license should be revoked and it shouldn’t be allowed to relocate to the Elks Tower. They also argue that the license should be awarded by lottery.

The city of Sacramento allows only four licensed card rooms at a time to operate.

The city claims that the issue of the license is a separate one from the granting of a conditional use permit. City staff points out that while the number of licenses is limited, that there is no such limit on conditional use permits.

The Downtown Sacramento Partnership, a business association, supports the project, as do some other neighboring businesses. So does the Alkali & Mansion Flats Historic Neighborhood Association. Support is not unanimous, however. Some neighbors of Elks Tower cite problems with the current tenants of the tower.