San Jose reduced annual regulatory fees for its two licensed card rooms, Bay 101 and Casino M8trix, from $1 million to $857,000 per card room and cut two civilian positions in the Police Department's Division of Gaming Control. City leaders characterized parts of the gambling policy as duplicative of state laws. The fee reduction lowers city revenue by about $440,000 annually, and officials expect savings from removing a senior auditor and a staff specialist to offset that loss. Remaining audit staff will continue compliance work. Police inspectors support the move but urged maintaining oversight against loan sharking, embezzlement, robberies and addiction risks.
The Chief of Police and administration believe, as we do, that their recommendations to eliminate those two targeted positions will not negatively impact public safety,
They also believe, as we do, that the City's other oversight measures are reasonable, cost-effective and necessary.
While cardrooms remain a legal business that provides tax revenue to the city, there are negative externalities that must be managed,
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