Although the voters of San Jose, California, in 2020 approved Measure H, allowing two casinos, Bay 101 and Casino M8trix, to expand their number of tables in exchange for higher taxes, and although a bill just signed by Governor Gavin Newsom, Assembly Bill 341, specifically carves out an exception for them in a statewide moratorium on expanding card clubs, they could still end up losing.
Moreover, the card clubs could still be stuck with the higher rate of taxation, according to a report by the San Jose Spotlight.
Measure H allowed the two cardrooms to add a maximum of 64 each, an increase of 15 tables. AB 341 limits the expansion to 10 tables per cardroom. The bill includes a carveout for San Jose, but it is not known whether the California Gambling Control Commission will allow it since it has twice before denied the city’s request to add tables.
Bay 101 General Manager Ron Werner told the Spotlight that he has been given assurances by the bill’s author that the language in the bill would allow the expansion. “We’re optimistic for the future,” he said. Nevertheless the casino remains in a lawsuit with the commission over the matter.
Councilmember Dev Davis said the city attorney “carefully crafted” Measure H to conform with state law.
He told the Spotlight: “Our city lobbyists have worked hard to ensure the measure is fully and appropriately recognized at the state level and will continue working towards that end. This measure was important for San Jose, because this new revenue goes to the general fund and helps provide services for all our residents, especially our most vulnerable.”
Whatever happens, the two casinos now pay an expanded tax rate of 16.5 percent.
