Chapter 5.12 — CARDROOMS

Editor's note— Ord. No. 1821, § 1, adopted April 15, 2009, repealed the former Ch. 5.12, §§ 5.12.010, 5.12.015, §§ 5.12.020—5.12.170, and enacted a new Ch. 5.12 as set out herein. The former Ch. 5.12 pertained to cardrooms and derived from Ord. 1779 § 1 (part), 2006.

For the purpose of this chapter:

"Cardroom" means any space, room, or enclosure, furnished or equipped with a table used or intended to be used as a cardtable for the playing of cards and similar games, and the use of which is available to the public, or any portion of the public.

"Cardroom employee" means any natural person employed in the operation of a gambling enterprise, including, without limitation, dealers, floor personnel, security employees, countroom personnel, age personnel, collection personnel, surveillance personnel, data-processing personnel, appropriate maintenance personnel, waiters and waitresses, and secretaries, or any other natural person whose employment duties require or authorize access to restricted gambling establishment areas.

"Gross revenue" means and includes seat rental fees, membership fees, table revenues, rental fees and charges, and any and all other gaming revenues derived from activities conducted on or within the card room premises.

"Financial interest" means any direct or indirect financial interest in the management, operation, ownership, profits, or revenue (gross or net) of a card room. A direct financial interest means a monetary investment in a card room. An indirect financial interest means owning one percent or more of any entity, i.e., any business, corporation, joint venture partnership, or trust that in turn has a direct financial interest in a card room.

(Ord. No. 1821, § 1, 4-15-2009)

This article does not create any vested or other property right of any kind in any permittee, pointholder, key management employee, or other person. The city reserves the right to, at any time, amend, modify, or repeal the provisions of this article and to otherwise regulate or prohibit any privilege exercised hereunder. This reservation includes but is not limited to the right of the city to amend, from time to time, a permit issued pursuant to the terms of this article by resolution of the city council.

(Ord. No. 1821, § 1, 4-15-2009)

Any person or persons wishing to apply for any license or permit authorized in this chapter must comply with not only this chapter, but with Sections 330 through 337 of the California Penal Code. In each case where a license is issued, it shall be nontransferable.

It is the stated purpose of this article to regulate card rooms in the City of Lodi concurrently with the State of California, and to impose local controls and regulations upon card rooms as codified in the "Gambling Control Act" as codified in Division 8, Chapter 5 of the California Business and Professions Code (commencing with Section 19800). All such references to the Gambling Control Act are to Division 8, Chapter 5 of the California Business and Professions Code, as may be amended.

(Ord. No. 1821, § 1, 4-15-2009)

It is unlawful for any person to engage in or carry on, or to maintain or conduct, or cause to be engaged in, carried on, maintained, or conducted, any card room in the city without first having secured a license to do so, or without complying with each regulation contained in this chapter pertaining to such cardroom.

(Ord. No. 1821, § 1, 4-15-2009)

A.

Any applicant for a cardroom license shall submit his application to the chief of police, which application shall be under oath, and shall include, among other things, the true names and addresses of all persons financially interested in the business. The term "persons financially interested" includes all persons who share in the profits of the business, on the basis of gross or net revenue. The past criminal record, if any of the applicant and of all persons financially interested in the business shall be shown on such application. The application shall also be accompanied by fingerprints of the applicant and of persons financially interested in the business.

B.

The applicant shall pay a fee to the finance department of the city to defray the cost of investigation in an amount as may be fixed and established from time to time by resolution of the city council.

(Ord. No. 1821, § 1, 4-15-2009)

The chief of police shall deny any applicant for a cardroom license, a license to operate such room if:

A.

The applicant has previously been convicted of a felony including a conviction by a federal court or a court in another state for a crime that would be a felony if committed in California; or

B.

The applicant has previously been convicted of a misdemeanor involving dishonesty, gambling, or moral turpitude within the ten-year period immediately preceding the submission of the application, unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code.

C.

The applicant fails to clearly establish eligibility and qualification under this chapter and under Business and Professions Code Section 19800 et seq.

D.

The applicant fails to provide information, documentation, and assurances required by this chapter, or failure to reveal any fact material to qualification, or supplying false information.

E.

Association of the applicant with criminal profiteering activity or organized crime as defined by Section 186.2 of the Penal Code.

(Ord. No. 1821, § 1, 4-15-2009)

The action of the chief of police in denying such a license shall be subject to an appeal to the city council. Notice of such appeal shall be filed with the city clerk within ten days after the denial of the license. Upon failure to file such notice within the ten-day period, the action of the chief of police in denying such license shall be final and conclusive.

(Ord. No. 1821, § 1, 4-15-2009)

A.

Each cardroom employee must obtain and possess a valid work permit issued by the chief of police. Applications for such work permits shall be submitted under oath and contain the past criminal record, if any, of the applicant and such information as may be necessary to determine whether the applicant is a proper person to be employed in a cardroom. Fingerprints of the applicant shall accompany the application. A work permit shall be issued only to persons twenty-one years of age or older.

B.

Any application for a work permit shall be subject to objection by the state division. If the division objects to the issuance of a work permit, it shall be denied. Such a denial may be reviewed in accordance with the Gambling Control Act (Business and Professions Code Section 19801 et seq.).

(Ord. No. 1821, § 1, 4-15-2009)

The chief of police shall deny any applicant for a cardroom license, a license to operate such room if:

A.

The applicant has previously been convicted of a felony including a conviction by a federal court or a court in another state for a crime that would be a felony if committed in California; or

B.

The applicant has previously been convicted of a misdemeanor involving dishonesty, gambling, or moral turpitude within the ten-year period immediately preceding the submission of the application, unless the applicant has been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code.

C.

The applicant fails to clearly establish eligibility and qualification under this Chapter and under Business and Professions Code Section 19800 et seq.

D.

The applicant fails to provide information, documentation, and assurances required by this chapter, or failure to reveal any fact material to qualification, or supplying false information.

E.

Association of the applicant with criminal profiteering activity or organized crime as defined by Section 186.2 of the Penal Code.

(Ord. No. 1821, § 1, 4-15-2009)

The action of the chief of police in denying such work permit shall be subject to an appeal to the city manager. Notice of such appeal shall be filed with the city clerk within ten days after the denial of the work permit. Upon failure to file such notice within the ten-day period, the action of the chief of police in denying such work permit shall be final and conclusive.

(Ord. No. 1821, § 1, 4-15-2009)

A.

Each application for a work permit shall be accompanied by an application fee, to be paid to the finance department, in an amount as may be fixed and established from time to time by resolution of the city council. The fee shall not be returned in the event that such work permit is refused, revoked, or suspended as provided in this chapter.

B.

The work permit shall be valid even though the holder of the permit may change his place of employment within the city. Upon approval of a work permit, the work permit shall be valid, unless suspended or revoked, for a period of one year from date of issuance.

C.

In order that the chief of police may investigate the applicant's qualifications and fitness to receive a cardroom employee work permit, every applicant shall be photographed and fingerprinted.

(Ord. No. 1821, § 1, 4-15-2009)

Any person who holds a valid cardroom employee work permit may obtain a new permit for the succeeding year by applying for the new permit during the month preceding the expiration date of the current permit. Cost for the new permit, which shall include the cost of a new identification card, shall be paid to the finance department, and shall be an amount as fixed and established from time to time by resolution of the city council.

(Ord. No. 1821, § 1, 4-15-2009)

If the holder of a cardroom employee work permit fails to renew the permit, his permit shall cease to be valid and he must make application for a new permit, if desired, as provided in this chapter.

(Ord. No. 1821, § 1, 4-15-2009)

A.

The chief of police has the right for cause to revoke or suspend any cardroom license or card room work permit issued under this chapter and to take possession of such permits.

B.

Any of the grounds upon which the chief of police is required to refuse to issue an initial cardroom license or cardroom work permit also constitutes grounds for such revocation or suspension. In addition, the failure of a holder of a cardroom license or cardroom work permit to comply with the provisions set forth in this chapter also constitutes grounds for revocation or suspension of such license or work permit.

C.

Suspension or revocation of a cardroom work permit shall be made only after a hearing granted to the holder of such permit before the chief of police, after five days' notice to the permit holder, setting forth the grounds of the complaint against him and stating the time and place where such hearing will be held. The action of the chief of police in this respect is subject to an appeal to the city manager. Notice of such

appeal shall be filed with the city clerk within ten days after the revocation or suspension. Upon failure to file such notice within the ten-day period, the action of the chief of police in revoking or suspending the license or work permit shall be final and conclusive.

(Ord. No. 1821, § 1, 4-15-2009)

It is unlawful to operate a cardroom in violation of any of the following regulations and rules:

A.

Not more than one cardroom shall be located at any one address.

B.

Only those games approved by and as defined by the California Office of the Attorney General, Bureau of Gambling Control, shall be played in any cardroom.

C.

Not more than fifteen tables shall be permitted in any cardroom. No more than fifteen tables shall be permitted to operate within the city.

D.

No gambling establishment may be located in any zone which has not been specifically approved for such a business. Additionally, none may be located near any of the unsuitable areas, as specified in Business and Professions Code Section 19852(a)(3).

E.

No person under the age of twenty-one shall be permitted at any card table, nor shall any person under the age of twenty-one be permitted to participate in any game played thereat.

F.

Cardrooms may be operated twenty-four hours per day, seven days a week. A cardroom shall adopt a schedule of hours of operation before it shall be allowed to operate. Such schedule of hours shall be clearly posted at the cardroom in order to provide adequate notice of its hours of operation.

G.

All cardrooms shall be open to police inspection during all hours of operation.

H.

Only table stakes shall be permitted.

I.

The cashing of bank checks for players or extensions of credit to players shall be in full compliance with the California Gambling Law and Regulations. No cardroom shall extend credit or cash checks for players in a manner not authorized by state law.

J.

Each card table shall have assigned to it a person whose duty shall be to supervise the game to see to it that it is played strictly in accordance with the terms of this chapter and with the provisions of the penal code of the state. This person may have more than one table under his supervision. He shall not, however, participate in the game.

K.

There shall be posted in every cardroom in letters plainly visible from all parts thereof, signs stating that only games approved by and as defined by the California Office of the Attorney General, Bureau of Gambling Control, shall be played in the cardroom. These signs shall also contain such other information relating to the regulations contained in this chapter as the chief of police may require.

L.

No person who is in a state of intoxication shall be permitted in any cardroom.

M.

The sale, purchase, transfer, assignment, or pledge of any property, or of any document evidencing title to the same, is prohibited in any cardroom.

N.

The operator or his employees shall not loan money to any person on any ring, watch, or other article of personal property for the purpose of securing tokens, chips, or other representatives of money as an ante.

O.

No shills shall engage in card games. This prohibition shall not apply to house players, provided they wear a badge in a conspicuous place, which badge identifies them as employees of the licensee.

P.

Patron security and safety. Each cardroom license shall be responsible and liable for its patrons' safety and security in and around the cardroom establishment. Before it shall be allowed to operate, each cardroom shall adopt a plan, to be approved by the city, to provide for the safety and security of its patrons.

(Ord. No. 1821, § 1, 4-15-2009; Ord. No. 1864, § 1, 10-3-2012; Ord. No. 1900, § 1, 11-19-2014; Ord. No. 1952, § 1, 6-6-2018)

The city council declares that it is not the intention of this chapter to permit the licensing of any cardroom for the playing of any game prohibited by the laws of the state, including but not limited to those games

enumerated in Section 330 of the Penal Code of the state, which section includes banking and percentage games.

(Ord. No. 1821, § 1, 4-15-2009)

Operators of cardrooms shall be required to obtain a business license pursuant to Chapter 5.04 of this code.

(Ord. No. 1821, § 1, 4-15-2009)

A.

In addition to the permit fees previously prescribed each permittee permitted pursuant to the provisions of this article shall pay to the city a monthly fee equal to twenty thousand dollars on the first two hundred forty thousand dollars of monthly gross revenue the permittee received from cardroom operations, and four and one-half percent of monthly gross revenue in excess of two hundred forty thousand dollars. Such payment shall be made to the city not later than fifteen days after the end of each month during which such gross revenues on which it was computed were received by the permittee.

B.

Each permittee shall file with the finance department before the fifteenth day following the end of each month a statement, under oath, showing the true and correct amount of gross revenue derived from the card game business permitted by the permit issued to the permittee for the preceding month. Such statement shall be accompanied by the payment of the correct amount of permit fee due and owing in accordance with the provisions of subsection A. of this section, and such sums correctly reflecting the monthly fees payable for the preceding month shall be accepted by the city, subject, however, to the right of the city to audit the matters reported in the statement to determine the accuracy of the figures contained therein and whether or not the correct amount payable to the city has been paid.

A signed declaration shall be attached to the statement or included therein, which shall be in substantially the same form:

"I hereby declare under penalty of perjury that the foregoing is true and correct."

(Ord. No. 1821, § 1, 4-15-2009; Ord. No. 1864, § 2, 10-3-2012)