SACRAMENTO, Calif., Jan. 23, 2015 /PRNewswire-USNewswire/ -- The California Department of Justice, Bureau of Gambling Control (Bureau) held a workshop today regarding the Proposed Amendment to Gaming Activity Authorization Regulation. This workshop discussed the regulation of collections of fees in player-dealer games.
The Communities for California Cardrooms (CCC), a nonprofit organization that represents over 40 cardrooms, attended the workshop along with over 150 people (in opposition of the proposed amendment) including the Honorable Willie L. Brown, Jr., Assemblymember Mike Gipson, Mayor of Citrus Heights Mel Turner, cardroom owners, cardroom employees and their families, chambers of commerce, and public safety. Over 1,700 letters of opposition were submitted to the Bureau, voicing their concerns over the Bureau's attempt to circumvent the legislative process by incorporating parameters of legislation that failed to pass in 2014, Assembly Bill 820.
"The Bureau does not have the authority to regulate collection fees under Business and Professions Code section 19826(g) because the Bureau's authority is solely limited to approving 'the play of any controlled game,' and does not include the power to approve 'collection rates,'" said Jarhett Blonien, CCC Executive Director.
These proposed amendments would not serve the Bureau's purported goal of encouraging players to take on the player-dealer position. Rather, the amendments would disproportionately impose costs on recreational, casual and low-wager players, encourage more risky "shot taking" gambling and destroy the economic viability of many gambling establishments, thereby harming local economies.
"With cardrooms contributing millions of dollars annually at both the state and local levels, we need to work to continue building a strong local economy that keeps small businesses thriving in our communities," said Blonien. "These proposed amendments will kill jobs; devastate local economies and public safety resources, hurt consumers, and could put many cardrooms out of business."
A recent economic study shows that card rooms provide over 23,000 living wage jobs for California and generate over the $273 million in state and local tax revenue per year. If half of the card rooms were forced to close due to the proposed regulations—as they likely would, California would lose over 10,000 living-wage jobs and nearly $130 million in yearly tax revenue. The closure of these card rooms would directly affect over 70 local municipalities whom depend on revenue from their local gambling establishments.
"Under the proposed regulations, Club One Casino's revenue would decline by at least 80%, resulting in the loss of at least 300 living wage jobs and almost $1 million of general fund tax receipts for the City of Fresno," said Kyle Kirkland, owner of Club One Casino. "This painful effect will be replicated in dozens of communities across the state at a time local jurisdictions cannot afford to lose living wage jobs or general fund monies."
The Communities for California Cardrooms (CCC) coalition is a 501(c)4 nonprofit organization that provides a united voice for small businesses; advances and protects local jobs and the economy that is provided by card rooms; educates and highlights the public on the benefits and history of card rooms in their communities; and encourages inclusiveness with businesses small and large that share in protecting and growing jobs in California communities.
For more information on CCC, visit www.calcardrooms.org.
SOURCE Communities for California Cardrooms