SAN JOSE IS EASING RESTRICTIONS on its local gambling industry as part of a months-long effort to lighten the regulatory burden placed on the city’s two card houses.
The City Council approved a package of five rule changes this past Tuesday in a unanimous vote, with Mayor Matt Mahan absent. San Jose Police Department officials said the approval, made without council deliberation, marks the final step in a reform push launched in June. As part of these reforms, the city has already reduced annual fees imposed on the card rooms, Casino M8trix and Bay 101 Casino, both located just east of San Jose Mineta International Airport.
“With these changes, the division of gaming control will continue to ensure the integrity of gaming operations, safeguard public welfare and uphold public confidence in San Jose card rooms,” Kirill Yermanov, gaming administrator with SJPD’s Division of Gaming Control, said during the meeting.
The changes loosen several local gambling regulations with the goal of removing “outdated requirements” and clarifying reporting standards, Yermanov said.
The changes increase the amount of time casinos have to report illegal activity on their property; double the maximum number of betting squares allowed on casino tables from 10 to 20; and remove a limit on the number of tournaments the casinos can hold each year.
They also allow card rooms to offer complimentary or discounted food and beverages to patrons. And they repeal a time limit intended to prevent patrons from spending more than 20 continuous hours inside a casino.
Card room operators embrace new rules
Casino M8trix Vice President and Director Rob Lindo applauded the changes.
“We appreciate the city of San Jose’s thoughtful approach to reviewing and modernizing its regulations to align them with state standards,” he told San José Spotlight.
A representative for Bay 101 declined to comment.
The latest reform proposals were originally set to be heard in December, but councilmembers delayed the vote twice.
Yermanov said since then, SJPD has conducted more outreach with one of the card rooms. Those conversations have produced additional proposed rule changes, though these proposals remain under review, he said.
Yermanov did not specify which card room participated in those talks, but public records show lobbyists representing Casino M8trix held a series of meetings with several councilmembers and police officials over the past three months.
“We appreciate the city of San Jose’s thoughtful approach to reviewing and modernizing its regulations to align them with state standards.”
Rob Lindo, Casino M8trix vice president and director
An SJPD spokesperson did not provide further details about the proposals, but told San José Spotlight further outreach is necessary before they move forward.
The City Council already voted in August to reduce annual fees for each card room from $1 million to $857,000. The vote also cut two civilian positions in SJPD’s division of gaming control. Backers said the changes, which are revenue neutral for the city, simply eliminate local measures that duplicate state enforcement efforts.
Councilmembers have said these revisions to the city’s gaming control laws will help stabilize San Jose’s gambling industry, after it was dealt a major setback in 2021 when state regulators blocked a voter-backed effort to expand local card rooms.
“When businesses make new investments in the City of San Jose, which has a chronic job to housing imbalance, it is essential we act fairly and strike a balance between being pro-business and securing money to fund critical city services,” a June memo laying out the reform agenda authored by Councilmembers Bien Doan, Pamela Campos and George Casey reads.
Contact Keith Menconi at keith@sanjosespotlight.com or @KeithMenconi on X.
This story originally appeared in San Jose Spotlight.