Southern California cities worried that sports betting could lead to cardroom closures
A coalition of cities noted that 32,000 jobs could be lost if the initiative goes through.
This sports betting initiative is backed by Pechanga Resort Casino along with several businesses and public safety, social justice and community groups and tribes.
However, a group of Southern California cities has stated that this initiative would fuel excessive litigation against cardrooms. The cities also feel that cardrooms could be effectively shut down which would remove 32,000 jobs.
Along with the jobs lost, the coalition states that $1.6bn in annual wages could be lost as well.
Although the sports betting initiative doesn’t have an official name, it’s being referred to as the Tribal Sports Wagering Act. This act would allow sports wagering at tribal casinos and at four California racetracks — Santa Anita Park in Arcadia, Los Alamitos Race Course in Cypress, Del Mar in San Diego, and Golden Gate Fields in Berkeley.
Those that oppose the act state that it would give tribal casinos a near-monopoly on gaming in California. This would include adding exclusivity over roulette, craps and sports wagering to their current monopoly on slot machines.
The anti-initiative coalition has also noted that if approved, the Los Angeles region could lose $71.1m in general-fund tax revenue which supports public health and homelessness services and senior programs.
The group of cities opposing the initiative includes representatives of Commerce, Compton, Hawaiian Gardens and Bell Gardens. The group held a conference on Thursday, May 19 outside the Commerce Senior Citizens Center.
Spokeswoman Kathy Fairbanks for the Coalition for Safe, Responsible Gaming said: “Our measure simply ensures existing laws preventing illegal gambling are being followed. Cardrooms following the law have nothing to worry about – nor do their employees.”
The potential for cardrooms shutting down seems to be the highest concern of the coalition, which would lead to a loss in revenue.
Fears of lost revenue extend to Bell Gardens Councilwoman Alejandra Cortez, who noted that the Bicycle Hotel & Casino generates about 46%, or $15m, of the city’s general-fund revenue.
Cortez stated: “We got a preview of what that would be like when we had to shut down in 2020 during the COVID-19 pandemic. It was closed for nine months and it resulted in a loss of about $10 million.”
City Councilman Jesse Alvarado of Hawaiian Gardens said: “If the eligible tribal gaming initiative were to become law, it would devastate our community.”
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