By Los Angeles County Politics (LACP)
Residents of five working-class Los Angeles County cities face a state-imposed fiscal cliff and thousands of layoffs due to State Attorney General Rob Bonta’s banning of blackjack-style games at cardrooms, which takes effect Tuesday, March 31, at midnight.
Bonta, who accepted hundreds of thousands of dollars in tribal casino contributions from interests that stand to gain an estimated $232 million annually under the new rules, is sticking to the ban despite outcries from LA County Supervisor Janice Hahn, and state and local elected officials representing Bell Gardens, Hawaiian Gardens, Commerce, Gardena, and Compton, the cities in question.
“My district is home to three card rooms, which make up a significant portion of their respective city’s general fund including: The Gardens Casino in Hawaiian Gardens (60%), Park West Bicycle Casino in Bell Gardens (40%), and the Commerce Casino & Hotel (40%), which is the largest in the world,” wrote Hahn to Bonta on Feb. 20.
“In an already fragile economic state, I am concerned that these regulations could result in thousands of workers losing good-paying jobs and would force some cities, like Hawaiian Gardens, the smallest city in Los Angeles County, to file for Chapter 9 bankruptcy.”
Bonta’s office did not respond to Hahn’s letter, and when LACP contacted the office for a response to the letter, they responded that this issue is “active litigation, we don’t have additional information to share at this time beyond what is on our website.”
The website provides a timeline for the new regulations, which, while going into effect this Wednesday, April 1, includes a Bureau of Gambling Control implementation timeline where cardrooms have until June 1 to submit compliance plans for modified game rules.
The bureau then has 90 to 120 days to approve or deny modifications, with full enforcement of denied games not required until September or October 2026.
The litigation Bonta’s office referenced is the California Gaming Association, California Cardroom Alliance, and Communities for California Cardrooms filing of two lawsuits in San Francisco Superior Court on March 9, seeking to invalidate both regulations and block their implementation.
As of this writing, no judge has granted an injunction.
In the meantime, the cities that have used cardrooms to raise tax revenue for essential municipal services are scrambling to make up the difference. What makes the stakes particularly acute is the longevity of these operations — the Commerce Casino has anchored its city’s finances since 1983, the Bicycle Hotel & Casino in Bell Gardens since 1984.
Commerce has already moved to the ballot. The Commerce City Council unanimously declared a fiscal emergency in February and placed a quarter-cent sales tax measure before voters on June 2, seeking to offset what city officials estimate could be an $18 million annual hit to a Casino that currently generates more than $30 million for the city — over 40 percent of its general fund.
Bell Gardens Mayor Miguel De La Rosa said the estimated annual impact to Bell Gardens’ general fund could be as much as a $7 million cut from the current $17 million in cardroom tax revenue if the AG’s regulations take effect.
“Essential services, including police officers, crossing guards, after-school programs, and senior programs, are the most at risk because they rely heavily on the general fund. Bell Gardens has been and continues to engage all of our local, regional, and statewide elected representatives directly and also through collaboration with the Parkwest Bicycle Hotel and Casino and our California Cities for Self-Reliance JPA,” said De La Rosa. “Additionally, we are working with the cardrooms’ attorneys in providing an impact declaration for Bell Gardens in support of their lawsuit against the AG’s regulations.”
Compton’s response was more measured. Compton spokesperson Gabrielle Barber said the city is “closely monitoring how these changes may impact local revenues” but that it is “too early to determine the full budgetary effect.” The city confirmed it remains in communication with Supervisor Holly Mitchell’s office regarding the issue.
Dr. Ayanna Davis, who is running to succeed termed-out Assemblymember Mike Gipson in the 65th Assembly District — which includes Hawaiian Gardens and Crystal Park cardrooms — made her position clear at her campaign kickoff this weekend.
“I’m always concerned about employment and taking jobs away,” Davis said. “I visited the cardrooms, and the employee satisfaction rate appears to be high. I would like to see those card games continue. I always want people working in the district, in the communities in which they live.”
