California: San Jose’s Cardroom Sues on Tax Hikes

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: February 15, 2021

In November, measure H passed by almost 73% of San Jose voters. It raises the casino tax from fifteen percent to 16.5%. It also allows each casino to add 15 new table games. M8trix Casino claims that the tax hike should delay until more gaming tables are permitted. It is currently under consideration. The California Gaming Authority says the city’s plan to increase the number of gambling tables is against state law.

More about Casino M8trix

M8trix Casino is one of California’s two card rooms in San Jose. They registered a trial against the city late last month. They ask the court to overturn proposals to increase taxes on both card rooms. And also ask to increase the number of table games.

The reason is to declare the entire voting provision void and invalid. In November, voters large majority approved the bill. The Gambling Authority has decided that the city’s plan to increase the number of gambling tables in the city is against state law.

In December, M8trix Casino requested approval from the Commission to increase the number of table games from 49 to 64, as allowed by the latest city rule. However, the application is still pending. When an advisor joined the office and found it illegal to order additional gaming tables, M8trix Casino claims that the tax hike should also lift.

According to Robert Lindo, “Casino M8trix thinks it right to postpone the tax hike, which was only part of measure H until additional gaming tables are approved for which they can pay this new tax.”

The ballot wording for the measure told voters that it hopes to bring in $ 15 million a year for street bills, homelessness, 911 emergency response, city services, and fire safety.

According to the city’s report, the increase in the number of card tables expects to generate $ 9 million, or 60% of the projected funding expects from the move. The tax hike will only result in a $ 2 million increase. The rest of $ 4 million is expected to come from increasing the city’s tax on gambling rooms for companies that provide in-house services to card players.

In the Santa Clara County Superior Court case, M8trix Casino argues that “there is no evidence that voters would approve of such an outcome” if additional income from increased table games were not part of the equation.

The Agreement Between the City and the State

According to the State Act, the city is prevented from expanding the no of card tables by 25% or more. The dispute between the city and the state relate precisely to the number of board games was allowed, licensed by San Jose Gaming Rooms in 1996. The November move would allow Bay 101 and M8trix Casino to expand the number of tables from 49 to 64. It is 60% of the 40 tables supposedly allowed in 1996.

According to Nora Freemann, her office is working with the California Office of Gambling Control and M8trix Casino to address the issue.

According to Lindo, he expects the state will agree to defer the interpretation of city laws. And respect the will of the voters.

However, if the government fails to do, the casino is filing a lawsuit as a precautionary measure, as the tax hike could cost M8trix casinos about $ 1 million a year without benefits. It provides additional income from the planned increase in the number of gaming tables.