California Attorney General Rob Bonta proposed new cardroom regulations last May that, without a clear statement as to why the changes are needed, will upend the game approvals issued by the prior attorney generals over the last 25 years and cause significant harm to cardrooms and the diverse communities where they are located. These regulations are not only anti-community, but they are also anti-business, especially with small business owners in Los Angeles.
Cities like Hawaiian Gardens, Commerce and Bell Gardens – home to over 100 Latino-owned businesses and proud members of the Latin Business Association – could face devastating economic consequences if these regulations go into place. The California attorney general is bound by a duty to the state to pursue inclusive economic opportunity for all, not limit it for the benefit of a few powerful tribes attempting to monopolize gaming in the state. The proposed regulations place politics over people and special interests over local communities.
Bonta should withdraw these regulations and begin a dialogue with the cities, businesses, residents and communities that will be negatively impacted if these regulations go forward.
Tax revenues from cardrooms represent huge portions of some cities’ general funds in California. Cardrooms are not only fully legal, but they are also highly regulated, taxed and essential contributors to public safety, housing and social programs through their payments into local general funds.
As chairman of the Latin Business Association, representing Latino-owned businesses across California, I am deeply concerned about the disproportionate harm that proposed cardroom regulations will inflict on Latino communities.
These regulations threaten not just the cardrooms themselves, but the broader ecosystem of small Latino-owned businesses that supply goods and services to them. From food vendors to maintenance providers to hospitality staff, many Latinos throughout the state rely on this industry as a stable source of income and opportunity.
Deep economic damage
Worse still, thousands of employees, many of whom are Latino, stand to be displaced. The resulting job losses would be devastating, especially in communities already facing systemic economic challenges.
But the impact goes even deeper. The cities that host these cardrooms rely on their tax contributions to fund basic services like police, fire, parks and public programs that support families and children. These are not abstract numbers; the loss of city revenue from card rooms and other affiliated businesses will have a real impact on the lives and livelihoods of our local first responders and social service workers.
In Hawaiian Gardens (population 14,149), where 77% of residents are Hispanic or Latino, revenues from the local cardroom account for over 70% of the city’s general fund. In Bell Gardens (population 39,501), 96% of the population is Hispanic or Latino, and half of the city’s budget comes from cardroom taxes. In Commerce (population 12,378), where 94% of residents are Latino, cardrooms contribute 40% of the city’s general fund.
When you look at these numbers, the picture becomes crystal clear: Latino communities are once again bearing the brunt of misguided policy. These proposed regulations would seriously impact essential services, harm local economies and deepen inequities in the very communities that are working to stay afloat while the cost of living continues to rise.
Take a hard look at the real-world consequences. Protecting cardrooms means protecting jobs, protecting small businesses and helping Latino communities across California.
Tribal casino operators are leveraging their immense political power to wipe out all forms of non-tribal gaming, and the reality is, it’s not just cardrooms; all competitors are under attack.
On behalf of California’s cardroom communities and Latino-owned businesses, I respectfully urge Bonta to withdraw the proposed regulations and work with the elected leaders, small business owners and local residents who want to preserve local gaming in their cities and towns.
Ruben Guerra is the chairman of the Latin Business Association, which has advocated for over 800,000 Latino-owned businesses across California for the past 50 years, working to create statewide opportunities that elevate their competitiveness and economic impact.
