State card room crackdown could cost San Jose $30M in tax revenue, officials warn

San Jose officials are urging California regulators to rescind new rules for the state’s card rooms, warning of dire economic fallout if restrictions take effect as planned in the coming months.

In a Feb. 19 letter sent to Attorney General Rob Bonta, city officials warned the regulations, which set stricter rules for certain types of gameplay, would devastate San Jose’s two card rooms — as well as the city’s finances. San Jose officials said the city takes in roughly $30 million in annual tax revenue from the casinos, known as Casino M8trix and Bay 101.