Report Prepared by: Ronda A. Lucas, Chief Deputy City Attorney
Title
SUBJECT: Approval Directing Staff to Draft for City Council Consideration an Ordinance Amending Chapter 9.08, “Gaming,” to Align with Current Business and Professions Code Sections 19961.07 and 19860
REPORT IN BRIEF
Considers directing Staff to draft and present for City Council consideration an ordinance amending Merced Municipal Code Chapter 9.08 to align with current Business and Professions Code Sections 19961.07 and 19860 and provide a strategic framework for gradually expanding gambling tables at establishments operating fewer than 20 tables.
RECOMMENDATION
City Council - Adopt a motion approving staff to amend provisions of Merced Municipal Code Chapter 9.08 as necessary to align with current Business and Professions Code Sections 19961.07 and 19860 to be presented to Council for its consideration.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than as recommended by staff; or,
3. Deny; or,
4. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025-26 Adopted Budget.
DISCUSSION
Effective in 2024, the Business and Professions Code Section 19961.07 was amended and now allows cities to revise their ordinances regarding the number of gaming tables permitted at licensed cardrooms for establishments that operate fewer than 20 gaming tables. A representative from the sole operating card room within City of Merced (City), Casino Merced, has reached out to City staff and requested the City consider amending its existing code to align with the changes in state law and increase the number of gaming tables at a slow pace over a ten-year period. Staff is seeking direction from City Council as to whether the City is interested in considering expanding the number of gaming tables in the manner allowed by state law.
Under the 2024 enacted statute, a strategic framework is created that allows for the gradual expansion of gambling tables operated at a gaming establishment by up to 2 additional tables within the first year after the changed ordinance takes effect, and up to two additional tables every four years thereafter, not to exceed ten additional tables above the number of tables permitted on January 1, 2023.
The City of Merced currently limits the total number of gaming tables within its jurisdiction to 12 and imposes a voter approval requirement to increase this limit. These twelve gaming tables are evenly divided between the two gaming establishments resulting in six tables per each establishment. Presently, only one gaming establishment is open.
Altering our existing code to parallel state law, the City of Merced could allow for two additional tables within the City’s jurisdiction and then up to two additional tables every four years thereafter until a total of 22 gaming tables are allowed to operate within the City’s jurisdictional boundaries.
IMPACT ON CITY RESOURCES
None.
ATTACHMENTS
None.