Card Clubs in California: A Review of Ownership Limitations

Report #163, April 2002

OVERVIEW

In this report, the Commission  calls on the Governor and the Legislature to eliminate the ownership limitations that prevent publicly traded companies from operating card clubs.

During its review, the Commission found that the ownership limitations are no longer necessary to protect the public safety.

The Commission recommends that the Governor and the Legislature eliminate the ownership limitations that prevent publicly traded companies – even those operating casinos in other states or under management contracts with California Indians – from operating card clubs. The Commission also recommends that policy-makers be clear about their intent concerning the expansion of gambling and as their predecessors did, consult directly with voters before allowing any expansion in the size and scope of gambling. The Commission also offers the following recommendations for implementing this change: ensure adequate resources and regulations are in place, craft consistent policy and clearly define who must be licensed.