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California Cities Scramble as Blackjack Ban Threatens Budgets and Jobs

A state crackdown on card clubs leaves two cities on the brink of crisis. Will voters approve a tax lifeline—or face devastating cuts to safety and jobs?

The image shows a city street with cars parked on the side of it, electric poles with wires,...
The image shows a city street with cars parked on the side of it, electric poles with wires, traffic signals with poles, light poles, trees, and buildings with windows. In the background there is a sky with clouds, and at the bottom of the image there is text indicating that this is a commercial property for sale at $1,250,000.

California Cities Scramble as Blackjack Ban Threatens Budgets and Jobs

Two California cities are pushing for a sales tax increase to counter the financial blow from a new state ban on blackjack in card clubs. Commerce and Bell Gardens will ask voters in June to approve a 0.25 percentage point rise, warning of deep cuts to essential services without it. The ban has already forced Commerce City Manager Ernie Hernandez to declare a fiscal emergency. Officials estimate losses between £6.5 million and £14.6 million, far outstripping the £3.7 million the proposed tax hike might recover. Police and fire services face slowdowns, while card club operators warn of halving their workforce.

Bell Gardens could lose around 40% of its general funds, with the tax measure expected to claw back roughly a third of that shortfall. Mayor Miguel De La Rosa stressed that cardrooms have been a legal revenue staple for decades. City Manager Michael B. O'Kelly called the tax increase vital to shield the budget from further damage. California Attorney General Rob Bonta's office has not yet responded to requests for comment on the cities' concerns.

The June ballot will decide whether residents approve the tax rise. If passed, it would soften—but not eliminate—the financial strain on both cities. Without it, deeper cuts to public services and jobs in the cardroom industry appear inevitable.

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