Wave Staff Report
COMMERCE — Mayors and other officials from Commerce, Bell Gardens, Hawaiian Gardens and Compton called on Gov. Gavin Newsom and state lawmakers May 12 to include emergency municipal relief funding in the upcoming May revise budget proposal and the final 2026-27 state budget as Attorney General Rob Bonta’s cardroom regulations threaten to eliminate more than $40 million in local revenue that fund essential city services.
The city leaders warned the regulations, which would effectively prohibit blackjack-style games and significantly restrict longstanding table games operated at licensed California cardrooms, could trigger devastating fiscal emergencies in cities that rely heavily on gaming tax revenues to fund police and fire protection, emergency response, parks, libraries, youth and senior programs, infrastructure maintenance and core city operations.
Labor leaders joined the city officials, warning the financial fallout would directly impact frontline city workers and the communities they serve.
“We represent workers who keep our cities running every single day; we help maintain parks, respond to emergencies, support community programs, and provide essential public services,” said Matthew Maldonado, executive director of AFSCME District Council 36. “If these revenues disappear, residents will see layoffs, reduced city services, and fewer community resources almost immediately. Our communities cannot continue absorbing the cost of decisions made at the state level. The state must provide emergency relief before these regulations devastate local jobs and essential services.”
Leaders emphasized that working families are already struggling under California’s rising cost of living, including higher costs for housing, groceries, utilities, and gas, and warned that local service cuts and layoffs would place even greater pressure on communities already stretched thin financially.
According to the attorney general’s own standardized regulatory impact assessment, the regulations could result in up to a 50% reduction in jobs and revenue across California’s cardroom industry. Despite those findings, the regulations were approved without a state mitigation plan for the cities, workers and residents who would bear the financial consequences.
“Commerce Casino generates critical revenue that supports nearly every aspect of city services our residents rely on,” Commerce Mayor Kevin Lainez said. “The loss of this funding would create an immediate structural deficit that threatens public safety, infrastructure improvements, youth programs, and the city workforce.
“Local communities should not be left alone to absorb the fallout of state actions without emergency support and a plan to stabilize essential services,” he added.
Commerce receives approximately 40% of its general fund revenue from the Commerce Casino and projects annual losses between $8 million and $18 million if the regulations take effect.
Commerce and Bell Gardens have already declared fiscal emergencies and placed quarter-cent sales tax measures, Measure PC and Measure BG respectively, on the June 2 ballot in an effort to stabilize services amid anticipated revenue losses. Local leaders stressed that local measures alone cannot offset cuts of this magnitude and warned that the State must act immediately to prevent devastating service reductions across impacted communities.
“These regulations place significant long-term financial strain on cities like Bell Gardens,” said Bell Gardens Mayor Miguel De La Rosa. “Working families are already dealing with rising costs everywhere they turn, from groceries to gas prices. The last thing our residents can afford are cuts to public safety, parks, youth programs, and emergency services. The state must step in with an emergency backfill plan before these communities face irreversible impacts.”
Bell Gardens receives approximately 38% of its general fund revenue from Parkwest Bicycle Casino and anticipates approximately $7 million in annual revenue losses tied to the regulations.
Hawaiian Gardens relies on the Gardens Casino for more than 60% of its general fund revenue, funding that supports police services, transportation, parks, and infrastructure improvements, while employing more than 1,200 workers. Compton estimates it could lose approximately 30% of its gaming tax revenue tied to impacts on Crystal Casino.
City and labor leaders urged Governor Newsom and the state Legislature to work collaboratively with impacted cities and labor organizations to establish an emergency backfill plan before the regulations take effect and fiscal impacts worsen across California communities.
