Proposition 26 includes a little-known provision that critics say could threaten the future of cardrooms, including more than a dozen in the Bay Area.
As California voters weigh in this fall on, one of the measures has drawn the ire of public workers unions and cities, including San Jose, that are worried its passage could undercut a chunk of their budgets.
A second ballot measure, Proposition 27, that would legalize online sports gambling, leaves cardrooms alone. But historically in California, cardrooms were forbidden to serve as the banker. Instead, the role was supposed to rotate around the table. But in 2007,, allowed cardrooms to simply ask patrons if they wanted to be the banker. If they declined, the house could serve as the banker round after round, which the tribal casinos say crosses the line.
Prop 26 is “meant to give tribes standing so they can take this issue to court one time and be done with it,” she said. Since pandemic shutdowns lifted, San Jose is estimating it will collect $27 million in annual taxes from the two cardrooms in the city.
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