California Cities Seek Tax Hikes Amid Blackjack Regulation Changes

Two California cities, Bell Gardens and Commerce, are proposing a 0.25% sales tax increase to offset revenue losses from new blackjack rules, which could lead to significant job losses and financial strain on local governments.

The new rules, approved by the Office of Administrative Law in February, include not using the words “blackjack” or “21” in game titles and not allowing automatic wins if dealt a blackjack. These changes are expected to have a major impact on the games played in cardrooms across the state.

Commerce officials estimated a revenue loss of $8 million to $18 million due to the new rules, while Bell Gardens officials estimated a 40% drop in general funds. The proposed tax increase would only bring in about $4.5 million. The new rules will go into effect on Wednesday, with cardrooms having until May 31 to submit a compliance plan.