San Jose Card Rooms Face Major Impact from New California Gambling Rules
LISTEN TO THIS ARTICLE:Operators warn the changes could reduce business volumes, impact jobs and shrink tax revenue that supports essential city services.
The updated rules, issued by the California Department of Justice, include a ban on traditional blackjack and stricter rotation requirements for the player-dealer position – a core operational feature of California card rooms.
Related: California Considers Potential Blackjack Ban from Cardrooms
Casino Operators Warn of Sharp Revenue Declines
Casino M8trix, one of San Jose’s largest card rooms, draws hundreds of players on weekdays and thousands over weekends. Vice President Rob Lindo said the new framework could cut the casino’s activity in half.
“I anticipate that we'll lose at least 50% of our business”, Lindo said, questioning whether the operation could remain viable under such conditions.
San Jose officials share that concern. The city has formally requested that Attorney General Rob Bonta reconsider or rescind the regulations, arguing the economic consequences could extend beyond gaming floors.
Tax Revenue at Stake
According to city officials, Casino M8trix and Bay 101 generate roughly $30 million annually in local tax revenue. That funding supports public services including police staffing, fire departments and emergency dispatch operations.
City leaders estimate the revenue contributes to funding approximately 95 police officers and 106 firefighters, along with 911 and dispatch services. Lindo added that portions of the funds also support housing initiatives, including more than 600 beds for individuals experiencing homelessness.
For a city grappling with high living costs and strained public budgets, officials argue that sudden revenue disruption could create difficult fiscal gaps.
More Regulation
Employees Fear Job Losses
Casino M8trix employs approximately 750 workers. Lindo said a sharp drop in play could lead to layoffs in a workforce that currently earns competitive wages.
“In San Jose, which is in the middle of Silicon Valley where everything is unaffordable, to provide employment approaching $90,000 average income on the gaming side and then see that threatened is deeply disappointing”, Lindo said.
Regular patrons have also voiced concern. Some players say removing traditional blackjack could push them to seek alternatives outside the city or even outside the state.
“I love the game”, said one customer, adding that traveling to play would be inconvenient and costly.
Industry Uncertainty
The California Office of Administrative Law approved the Department of Justice’s rule changes despite opposition from several card rooms. While tribal casinos operate under separate compacts, card rooms have historically relied on player-dealer structures to offer blackjack-style games.
The stricter rotation rules could further limit flexibility in how tables are managed, potentially reducing efficiency and profitability.
Bay 101 declined to comment publicly. The Attorney General’s office was not available for interview.
As the April 1 implementation date approaches, operators across California are reassessing their business models. For San Jose, the debate has shifted beyond gaming policy to questions about employment, public funding and economic stability. Whether the state revisits the regulations remains uncertain, but the stakes for local card rooms – and the communities that depend on them – are increasingly clear.
RELATED TOPICS: Regulation
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