- Two southeastern Los Angeles cities look to increase sales tax rates in response to the latest California regulations against blackjack.
- Bell Gardens and Commerce anticipate a 40% loss of general funds under the blackjack ban, and they look to replenish their losses in the form of a 0.25% tax increase.
- The tax increase proposal will be voted on in the 2026 June ballot.
LOS ANGELES – California cities are responding to the state’s blackjack ban by proposing a sales tax increase. Commerce and Bell Gardens, two southeast Los Angeles cities, proposed a sales tax rate increase by 0.25% that officials claim is necessary to protect city budgets.
A California blackjack ban will be enacted on April 1, and southeastern LA cities are already preparing for the worst. The ban resulted in cardroom closures that were imperative for the local economy.
The new regulations changed a legal California blackjack interpretation where cardrooms allowed players to play blackjack against the house by utilizing outside dealers. This type of blackjack is supposed to be reserved for tribal casinos in California, leading to state regulations against the loophole.
Cities Must Pass Tax Increase To Offset Blackjack Ban Losses
California cardrooms generated roughly $500 million in annual tax revenue, and reports show that Commerce and Bell Gardens are among the cities that will be impacted the most. These L.A. County cardrooms employ more than 9,000 people, so many local residents will be left without a job.
According to reports published by the LA Times, “The proposed measure could recoup at least $4.5 million in Commerce, only a fraction of the expected $8-million to $18-million loss as a result of the ban, said Mayor Kevin Lainez.”
The tax measure will be voted upon in the upcoming June 2026 ballot. Online casinos and Indian tribes will still be permitted to offer legal blackjack, but the loss of local cardrooms forces the hand of city officials to increase taxes.