The cities of Bell Gardens and Commerce have declared fiscal emergencies in response to new provincial regulations on card rooms that threaten to eliminate millions of dollars in essential municipal revenue. City officials announced Thursday that a quarter-cent sales tax measure will appear on the June 2 ballot for voters in both communities to decide on.
The proposed tax increases are intended to stabilize the finances of the two Los Angeles County cities, which are heavily reliant on tax revenue from their local casinos. Bell Gardens is home to the Parkwest Bicycle Casino and Commerce is home to the Commerce Casino. Approximately 40 per cent of the card room table tax revenue from these establishments goes directly into the general funds of their respective cities, supporting critical public services.
If approved by voters, the Commerce Essential Services Protection Measure is projected to generate about $4.5 million annually. In Bell Gardens, the corresponding Measure BG is expected to bring in approximately $1.2 million a year. Officials state these measures are a necessary proactive step to prevent the chaos that would result from a sudden, massive budget shortfall.
Projected financial impact and proposed solution
The new regulations, implemented by California Attorney General Rob Bonta, have created a significant level of financial uncertainty for the two cities. Commerce Mayor Kevin Lainez stated that the potential losses are substantial. “We are projecting a loss from anywhere from eight to $18 million,” Lainez said at a gathering of city representatives.
Bell Gardens Mayor Miguel de la Rosa highlighted the human cost of the regulatory changes, predicting major job losses that will affect the local economy. “That goes beyond policy change, it's a direct impact on working families, our local economy and on the services our residents depend on,” de la Rosa said. He estimated that the changes could lead to up to a 50 per cent loss of local jobs connected to the casino.
Even if the sales tax measures are successful, the new revenue will not completely cover the anticipated deficit. Bell Gardens City Manager Micheal B. O’Kelly noted that the city would recover only about half of the potential lost revenue. “It's not our intention to raise the cost of living for the residents and stakeholders of Bell Gardens, but we have to make this hard decision in order to preserve what we already have,” O’Kelly said.
The role of casinos in the community
Mayor de la Rosa emphasized that the casinos are more than just economic engines, they are integral parts of the community fabric. The Parkwest Bicycle Casino in his city is a major employer, with many Bell Gardens residents working there to support their families.
Bicycle Casino supports hundreds of local jobs, many held by Bell Gardens residents who are working hard to support and sustain their families and beyond that, they have consistently shown up as a community partner, supporting local events, investing in programs for our youth and seniors and being present in the life of the city.
He described the casino not as an isolated business, but as a "genuine part of the community." This deep integration makes the potential revenue loss all the more impactful, affecting not just city services but also the economic stability of countless households. The financial stability of local businesses and workers is a persistent concern in the region, with recent federal policy shifts creating additional stress on some entrepreneurs, as seen in a recent SBA rule change that has affected non-citizen business owners.
For decades, licensed card rooms have operated legally in California, subject to provincial regulation and taxation. In small, working-class cities like Bell Gardens and Commerce, they have become the dominant source of discretionary funding that allows the municipalities to provide services beyond the bare minimum.
A controversial state-level decision
The new regulations from the California Department of Justice (DOJ) target the rules governing how certain card games are played, specifically focusing on the rotation of the player-dealer position and the operation of blackjack-style games. These have been long-standing points of contention between the province’s tribal casinos and independent card rooms.
Tribal casinos have argued for years that the business model used by card rooms for these "California games" is illegal and infringes upon the exclusivity for certain types of gaming they were granted in compacts with the state. The new rules are seen by many as a victory for the powerful tribal gaming lobby.
Mayor Lainez of Commerce was critical of how the regulations were enacted, accusing Attorney General Bonta of bypassing the electorate. Lainez pointed out that a provincial proposition with similar aims was defeated by voters in 2022, suggesting the new rules circumvent the public's expressed will. While the Office of Administrative Law approved the regulations on Feb. 6, 2026, the province has provided a detailed implementation timeline, which can be viewed on the Attorney General's website.
An attack on communities of colour?
Lainez also raised concerns that the regulations disproportionately harm minority communities. “We are a city of 12,000 and we are a vulnerable community,” he said. “We are a community of color. And if you look at the card room cities all across the state, they are also communities of color, and so we are viewing this also as an attack on communities of color.”
This perspective frames the issue not just as a fiscal or legal dispute, but as one of equity. The cities affected, often with large Latino and other minority populations, are less able to absorb such a significant financial shock compared to more affluent municipalities. The historical context of Los Angeles County, which was founded by a diverse group of Native American, African, and European settlers, underscores the complex tapestry of communities that make up the region today.
The situation in Bell Gardens and Commerce reflects a broader tension where local economies, particularly in smaller cities, are subject to the influence of larger political and economic battles, similar to how influential billionaires can shape the political landscape in other regions, such as Ken Griffin's growing influence in Miami.
As the cities brace for the financial impact, their futures now lie in the hands of voters this June. The situation highlights the delicate balance between provincial regulation, competing business interests, and the financial stability of local communities that rely on the revenue. The regulations are scheduled to take effect on April 1, 2026, but the deadline for card rooms to submit their compliance plans to the Department of Justice is 60 days later, on May 31, 2026.
