Cities in LA County propose sales tax hike after new card room games regulations in the state go into effect

The cities of Bell Gardens and Commerce have declared fiscal emergencies as new card room regulations are set to go into effect April 1. Bell Gardens is home to the Parkwest Bicycle Casino and Commerce to the Commerce Casino. About 40% of each casino’s card room table tax revenue goes to the general fund of each city. 

In order to prevent any chaos from the loss of millions of dollars for the general fund that goes to critical services like police, fire, parks and recreation, library services and senior and youth programs, the cities are asking voters to approve a quarter-cent sales tax measure in the June 2 elections to stabilize finances.

Representatives from both cities gathered on Thursday to ask the voters to support the Commerce Essential Services Protection Measure, which is projected to generate approximately $4.5 million annually, and Measure BG in Bell Gardens, which is projected to generate approximately $1.2 million annually.

Commerce Mayor Kevin Lainez said California General Attorney Rob Bonta has circumvented the will of the people by implementing regulations, after a state proposition stating similar elements was defeated in 2022. 

“We are projecting a loss from anywhere from eight to $18 million,” Lainez said. “And with the sales tax measure, if it passes, we are projecting to recoup at least $4.5 million that will stay here in the City of Commerce to help us fund our infrastructure projects, to help us fund our public safety services and our youth and senior programs.”

Bell Gardens Mayor Miguel de la Rosa said the changes will also cause about up to 50% of local job loss. 

“That goes beyond policy change, it's a direct impact on working families, our local economy and on the services our residents depend on,” he said. 

De la Rosa said the cities can either wait and see the outcome of the loss of revenue from casinos or plan ahead. Both cities opted for the latter with the half a cent sales tax to help their communities move forward. 

“[A] big part of that reality is understanding the role of the Parkwest Bicycle Casino in Bell Gardens. It's a major economic driver, but more importantly, it's deeply connected to this community,” De la Rosa said. 

“Bicycle Casino supports hundreds of local jobs, many held by Bell Gardens residents who are working hard to support and sustain their families and beyond that, they have consistently shown up as a community partner, supporting local events, investing in programs for our youth and seniors and being present in the life of the city.” 

Micheal B. O’Kelly, city manager of Bell Gardens, said even if the sales tax is approved, the city would recover only about half of potential lost revenues from Bonta’s proposed regulations. 

“It's not our intention to raise the cost of living for the residents and stakeholders of Bell Gardens, but we have to make this hard decision in order to preserve what we already have,” he said. 

De la Rosa emphasized that card rooms are a legal business in California and, for decades, the state has allowed them to operate with regulations and taxation. He said the casino is not a business that operates in isolation, but a genuine part of the community. 

Lainez highlighted the fact that small cities are the main target for these regulations. 

“We are a city of 12,000 and we are a vulnerable community,” he said. “We are a community of color. And if you look at the card room cities all across the state, they are also communities of color, and so we are viewing this also as an attack on communities of color.”

The reasons

According to a press release from the California Department of Justice (DOJ) the regulations address concerns that govern card rooms, the Rotation of the Player-Dealer Position and Blackjack-Style games.

For years tribal casinos have said the card room business model is illegal because of concerns of the rotation of the player-dealer position in California gambling establishments, and the other concerning blackjack-style games.

“These regulations will take effect on April 1, 2026, but as specified in the regulations, the deadline for card rooms to submit plans for compliance with the regulations to the Department of Justice (DOJ) is 60 days later, May 31, 2026,” the press release states. 

While the Office of Administrative Law approved the DOJ regulations on Feb. 6, 2026, there is still an implementation timeline, which gives card rooms the opportunity to file any applications to modify game rules. The full timeline can be found here: 

https://oag.ca.gov/gambling/regulations