2025-01326 [Pass for Publication] Ordinance Amending Chapter 5.32 of the City Code Relating to Cardrooms

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01326 7/22/2025
[Pass for Publication] Ordinance Amending Chapter 5.32 of the City Code Relating to Cardrooms
File ID: 2025-01326
Location: Citywide
Recommendation: 1) Review an ordinance amending City Code Chapter 5.32, relating to cardrooms; 2) pass for publication the ordinance title as required by Sacramento City Charter 32(c) for consideration on August 12, 2025.

Contact: Jackie Rice, Revenue Manager, (916) 808-5844, [email protected]; Peter Coletto, Director of Finance, (916) 808-5416, [email protected]; Department of Finance Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance (Redline)
3-Ordinance (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 the total number operated at the establishment on January 1, 2023.

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File ID: 2025-01326 7/22/2025
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 California Department of Justice, Bureau of Gambling Control (“Bureau”) for approval prior to adoption. Staff submitted the proposed ordinance to the Bureau in February 2025 and received approval to move the ordinance forward for Council adoption in April 2025.

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: On February 11, 2025, the Law and Legislation Committee provided authority to forward amendments to Chapter 5.32 to City Council upon approval from the Bureau. Approval from the Bureau was received in April 2025.

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 increased revenues and economic activity as a result of the increased gambling tables.

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File ID: 2025-01326 7/22/2025
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.

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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 April 25, 2025, 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, 2025: 17 card tables.

2. Beginning on January 1, 2026: 19 card tables.

3. Beginning on January 1, 2030: 21 card tables.

4. Beginning on January 1, 2034: 23 card tables.

5. Beginning on January 1, 2038: 25 card tables.

6. Beginning on January 1, 2042: 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.