San Jose lowers fees for its two cardrooms, reduces police staff that monitor gambling

San Jose leaders moved to lower regulatory fees for Bay 101 and Casino M8trix from $1 million to $857,000 annually, while eliminating two civilian positions in the police department's gaming oversight. The City Council's unanimous decision aims to streamline regulations deemed redundant with state laws, despite the loss of $440,000 in annual revenue. City officials assert that the staff cuts will generate cost savings that offset this revenue loss without compromising public safety. However, the police union cautioned that reduced oversight could exacerbate issues like loan sharking and gambling-related crimes. The cardrooms have historically faced regulatory challenges, including a long-standing lawsuit over excessive fees that was settled in 2020.

Additionally, the state has restricted cardroom expansions, further complicating the financial landscape for these businesses. The city also plans to simplify administrative burdens related to gambling oversight, which officials believe can be done without sacrificing necessary regulations. This move marks a significant shift in the city’s approach to gambling amid ongoing discussions about responsible gaming practices.