City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01524 10/15/2024 Consent Item 4.
Ordinance Amending Chapter 5.32 of the City Code Relating to Cardrooms File ID: 2024-01524
Location: Citywide
Recommendation: 1) Review an ordinance amending City Code Chapter 5.32, relating to cardrooms; 2) provide authority to forward the draft amendments to the California Department of Justice, Bureau of Gambling Control (“Bureau”) for review and comment; and 3) provide authority to forward the ordinance to City Council for adoption if Bureau indicates the ordinance is permissible.
Contact: Jackie Rice, Revenue Manager, (916) 808-5844, [email protected]; Peter Coletto, Director of Finance, (916) 808-5416, [email protected]; Department of Finance Presenter: Jackie Rice, Revenue Manager, (916) 808-5844, [email protected]; Peter Coletto, Director of Finance, (916) 808-5416, [email protected]; Department of Finance Attachments:
1-Description/Analysis
2-Ordinance (effective January 2025- Redline)
3-Ordinance (effective January 2025- Clean)
4-Ordinance (effective July 2025- Redline)
5-Ordinance (effective July 2025- Clean)
Description/Analysis
Issue Detail: Current City code limits the maximum number of allowable gambling tables per cardroom to seventeen (17). Effective January 1, 2024, the California State Legislature enacted Section 19961.07 of the California Business and Professions Code through Assembly Bill 341 (AB 341). AB 341 authorizes local jurisdictions to amend an ordinance that applies only to cardrooms that operate fewer than 20 tables. These cardrooms may increase their maximum number of tables by up to 10 additional tables above the number of tables operated by the cardroom on January 1, 2023, but only by up to two additional tables in the first year after the ordinance takes effect, and by up to two additional tables every four years thereafter.
The proposed ordinance applies to gambling establishments of fewer than 20 gambling tables and provides for expansion of allowable tables by two additional tables the first year following enactment, and up to two additional tables every four years thereafter, not to exceed ten additional tables above
File ID: 2024-01524 10/15/2024 Consent Item 4.
the total number operated at the establishment on January 1, 2023.
To align City code with the California Business and Professions Code, staff in the Finance, Community Development and Police Departments have coordinated the recommendation to amend the maximum number of gambling tables per cardroom as follows:
California Business and Professions Code requires that any amendment to a City ordinance related to gambling establishments be submitted to the Bureau for approval prior to adoption. Should the Law & Legislation Committee forward this ordinance for Council consideration, staff will seek the required approval from the DOJ prior to consideration by Council. Staff have prepared two different versions of the revised ordinance with different effective dates, depending on the Bureau’s turnaround time.
Policy Considerations: None.
Economic Impacts: Amending City code to allow for more gambling tables per cardroom presents an opportunity for businesses within the industry to experience growth and provide job creation within the City.
Environmental Considerations: This action is not a “project” subject to CEQA because it involves administrative matters and will not result in new physical development, direct changes to the physical environment, and any reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines § 15378(b)(5).)
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: Amending City code to increase the maximum allowable gambling tables per cardroom aligns with the recently updated State law. Additionally, the City will benefit from
File ID: 2024-01524 10/15/2024 Consent Item 4.
increased revenues and economic activity as a result of the increased gambling tables.
Financial Considerations: The City of Sacramento levies quarterly table operation fees in the amount of $225 per table. Increasing the allowed maximum tables per cardroom will result in increased revenues.
Local Business Enterprise (LBE): None.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 5.32.180 OF THE SACRAMENTO CITY
CODE, RELATING TO CARDROOMS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. Background
A. Effective January 1, 2024, California Business and Professions Code section 19961.07 provides that a city may allow existing cardrooms operating fewer than 20 tables to increase the number of tables by two within the first year, and up to two additional tables every four years thereafter, not to exceed ten additional tables.
B. In accordance with California Business and Professions Code section 19961.1, the city submitted the proposed amendment to the California Department of Justice, Bureau of Gambling Control for review and comment. The Bureau indicated in a letter dated ________ XX, 20XX, that the proposed amendment is permissible.
SECTION 2.
A. Subsection B of section 5.32.180 of the Sacramento City Code is amended to read as follows:
B. Not more than seventeen (17) card tables The maximum number of card tables shall be permitted allowed in any cardroom is as follows:
1. Until December 31, 2024: 17 card tables.
2. Beginning on January 1, 2025: 19 card tables.
3. Beginning on January 1, 2029: 21 card tables.
4. Beginning on January 1, 2033: 23 card tables.
5. Beginning on January 1, 2037: 25 card tables.
6. Beginning on January 1, 2041: 27 card tables.
B. Except as amended by subsection A above, all provisions of section 5.32.180 remain unchanged and in full effect.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 5.32.180 OF THE SACRAMENTO CITY
CODE, RELATING TO CARDROOMS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. Background
A. Effective January 1, 2024, California Business and Professions Code section 19961.07 provides that a city may allow existing cardrooms operating fewer than 20 tables to increase the number of tables by two within the first year, and up to two additional tables every four years thereafter, not to exceed ten additional tables.
B. In accordance with California Business and Professions Code section 19961.1, the city submitted the proposed amendment to the California Department of Justice, Bureau of Gambling Control for review and comment. The Bureau indicated in a letter dated ___________ XX, 20XX, that the proposed amendment is permissible.
SECTION 2.
A. Subsection B of section 5.32.180 of the Sacramento City Code is amended to read as follows:
B. The maximum number of card tables allowed in any cardroom is as follows:
1. Until December 31, 2024: 17 card tables.
2. Beginning on January 1, 2025: 19 card tables.
3. Beginning on January 1, 2029: 21 card tables.
4. Beginning on January 1, 2033: 23 card tables.
5. Beginning on January 1, 2037: 25 card tables.
6. Beginning on January 1, 2041: 27 card tables.
B. Except as amended by subsection A above, all provisions of section 5.32.180 remain unchanged and in full effect.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 5.32.180 OF THE SACRAMENTO CITY
CODE, RELATING TO CARDROOMS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. Background
A. Effective January 1, 2024, California Business and Professions Code section 19961.07 provides that a city may allow existing cardrooms operating fewer than 20 tables to increase the number of tables by two within the first year, and up to two additional tables every four years thereafter, not to exceed ten additional tables.
B. In accordance with California Business and Professions Code section 19961.1, the city submitted the proposed amendment to the California Department of Justice, Bureau of Gambling Control for review and comment. The Bureau indicated in a letter dated _______XX, 20XX, that the proposed amendment is permissible.
SECTION 2.
A. Subsection B of section 5.32.180 of the Sacramento City Code is amended to read as follows:
B. Not more than seventeen (17) card tables The maximum number of card tables shall be permitted allowed in any cardroom is as follows:
1. Until June 30, 2025: 17 card tables.
2. Beginning on July 1, 2025: 19 card tables.
3. Beginning on July 1, 2029: 21 card tables.
4. Beginning on July 1, 2033: 23 card tables.
5. Beginning on July 1, 2037: 25 card tables.
6. Beginning on July 1, 2041: 27 card tables.
B. Except as amended by subsection A above, all provisions of section 5.32.180 remain unchanged and in full effect.
1 ORDINANCE NO.
Adopted by the Sacramento City Council
[Date Adopted]
AN ORDINANCE AMENDING SECTION 5.32.180 OF THE SACRAMENTO CITY
CODE, RELATING TO CARDROOMS
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. Background
A. Effective January 1, 2024, California Business and Professions Code section 19961.07 provides that a city may allow existing cardrooms operating fewer than 20 tables to increase the number of tables by two within the first year, and up to two additional tables every four years thereafter, not to exceed ten additional tables.
B. In accordance with California Business and Professions Code section 19961.1, the city submitted the proposed amendment to the California Department of Justice, Bureau of Gambling Control for review and comment. The Bureau indicated in a letter dated _________XX, 20XX, that the proposed amendment is permissible.
SECTION 2.
A. Subsection B of section 5.32.180 of the Sacramento City Code is amended to read as follows:
B. The maximum number of card tables allowed in any cardroom is as follows:
1. Until June 30, 2025: 17 card tables.
2. Beginning on July 1, 2025: 19 card tables.
3. Beginning on July 1, 2029: 21 card tables.
4. Beginning on July 1, 2033: 23 card tables.
5. Beginning on July 1, 2037: 25 card tables.
6. Beginning on July 1, 2041: 27 card tables.
B. Except as amended by subsection A above, all provisions of section 5.32.180 remain unchanged and in full effect.