Chapter 5.44 CARDROOMS

“Application” means and includes any document, paper, questionnaire, or financial statement, which is required to be filled out by the applicant as a prerequisite for the consideration by the Council in determining whether or not a permit is to be issued to the applicant.

“Card games” means and includes any and all games not specifically prohibited by Section 330 of the Penal Code of the State.

“Cardroom” is a place which is duly licensed as provided in this chapter, containing tables and other similar conveniences, for the playing of such games as may be permitted under the provisions of Section 330 of the Penal Code of the State.

“City” means the City of Lake Elsinore, California.

“City Council” means the City Council of the City of Lake Elsinore, California.

“Commission” means the California Gambling Control Commission.

“Conduct” means and includes to engage in, transact, maintain, manage, open, establish, operate, play, deal and carry on.

“Employee” means any natural person employed in the operation of the cardroom, including, without limitation, dealers, floor personnel, security employees, courtroom personnel, collection personnel, cage 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 cardroom areas.

“Gross receipts (revenue)” means and includes seat rental fees and any and all table revenue, as provided for in this chapter, but does not include fees (receipts) charged and collected from players, that are returned to the players as tournament or jackpot bonuses.

“Licensee” or “permittee” means and includes any person as defined in this chapter as a “person” who has been issued a cardroom license or permit under the provisions of this chapter.

“Person” means and includes any individual, combination of individuals, firm, association, corporation, partnership, joint venture, organization, or other entity authorized by law.

“Point holder” means and includes any person defined as a “person,” having any interest whatsoever in a cardroom or its operation, whether the interest is legal, equitable, or otherwise, to the extent of three percent or more interest. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 977 § 1, 1994; Ord. 718 § 3, 1984; Ord. 522 § 2, 1973. Code 1987 § 5.28.010].

5.44.020 Permit and license – Required.

It is unlawful for any person to attempt to establish, open, operate, or maintain any cardroom wherein card games are conducted without first having obtained a permit and license from the City to do so. A permit or license shall only be issued hereunder to an applicant who holds a valid gambling club license issued under the Act. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 2, 1973. Code 1987 § 5.28.020].

5.44.030 Maximum number of permits.

The number of cardroom establishment permits issued within the City of Lake Elsinore shall not exceed 16 permits. More than one permit may not be held by a single person or entity. In determining to issue any permits subsequent to the date of the enactment of this subsection, the City Council shall consider the relative location of existing cardroom(s) to the proposed additional cardroom, the impact of any subsequent permits on existing cardroom(s), the financial impact on the City of Lake Elsinore, and any other matters deemed by the City Council to be appropriate. The relative weight each of the factors receives and the determination as to whether or not to issue an additional permit(s) shall be within the complete discretion of the City Council. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 5, 1995. Code 1987 § 5.28.030].

5.44.040 Term of license – Renewal.

Each permit for a gambling establishment issued hereunder shall be valid for two years. At least 60 days prior to the expiration of a permit issued hereunder, the permit holder shall submit a completed renewal application, under penalty of perjury, on a form provided by the City, accompanied by a copy of the applicant’s current, nonrevoked license issued pursuant to the Act, to the City. The renewal application shall be accompanied by a nonrefundable fee in an amount established by resolution of the City Council, to defray the costs of investigation of the applicant. [Ord. 1113 Exh. A, 2003. Code 1987 § 5.28.040].

5.44.050 Building, parking and land requirements.

No application for a license or permit under this chapter shall be considered or granted by the City unless the land area upon which said business is to be conducted contains at least five acres of ground and the portion of the building to be devoted to cardroom activities consists of not less than 4,500 square feet, together with a restaurant facility consisting of not less than 2,500 square feet, together with paved parking facilities for not less than 300 automobiles, together with acceptable lighting, driveways and landscaping as may be required by the City. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 5, 1973. Code 1987 § 5.28.050].

5.44.060 Fees.

The following fees shall be paid by the applicant to the City as follows:

A. An application fee in the amount of $5,500 shall be paid by the applicant to the Administrative Services Director upon the filing of any application which is to be used to defray the costs of a complete investigation of the applicant and of all other matters contained in the application and shall not be returned to the applicant whether said license or permit is granted or denied.

B. Effective December 31, 1993, a quarterly license fee of $2,250 plus $75.00 for each gaming table in excess of the minimum number of tables as set forth in LEMC 5.44.140, said license fee to be paid in advance for each calendar quarter no later than the fifteenth day of the first month of that quarter.

C. A quarterly permit fee in addition to the fees in subsections (A) and (B) of this section based upon a percentage of gross receipts according to the schedule set forth in subsection (D) of this section, with a minimum of $2,250, said fee to be paid by the fifteenth day of the month following the end of the calendar quarter.

The quarterly permit fee will be one percent of gross revenue not to exceed the amount listed on the quarterly permit fee schedule.

D. Permit Fee Schedule Per Quarter Effective December 31, 1993.


Gross Revenue
$2,000,000 – $3,000,000	$6,000 + 3.0% of excess over $2,000,000
$3,000,000 – $4,000,000	$36,000 + 3.5% of excess over $3,000,000
$4,000,000 – $5,000,000	$71,000 + 4.0% of excess over $4,000,000
$5,000,000 and over	$111,000 + 5.0% of excess over $5,000,000

E. Quarterly license fee, table fee, and permit fee will become effective as follows for holder of license on December 31, 2003:


Type of Fee	Effective Date 12/31/03
Quarterly License Fee	$5,000
14 Tables
Additional Tables	$400.00 each
Quarterly Permit Fee	$6,000

F. Any license authorized and issued by the City Council after January 1, 1994, will pay the quarterly fee identified as effective December 31, 1998.

G. License and permit fees acquired prior to any quarterly date as referred to above shall be prorated to the nearest quarterly payment date and thereafter such renewals shall be made in strict compliance with the provisions of this chapter.

H. The City shall be permitted, upon reasonable notice and during regular business hours, to audit the books and records of any license holder hereunder for the purpose of determining compliance with this chapter. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 980 § 4, 1994; Ord. 969 § 4, 1993; Ord. 914 § 1, 1991; Ord. 911 § 11, 1991; amended 1987; Ord. 718 § 3, 1984; Ord. 522 § 6, 1973. Code 1987 § 5.28.060].

5.44.070 Permit fee – Increases.

Effective as of January 1, 1974, the permit fees shall be increased to the sum of $750.00 quarterly, and thereafter shall be increased as follows:

A. As of January 1, 1976, the permit fees shall be increased to the sum of $1,000 quarterly.

B. As of January 1, 1978, the permit fees shall be increased to the sum of $1,250 quarterly.

C. As of January 1, 1980, the permit fees shall be increased to the sum of $1,500 quarterly. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 7, 1973. Code 1987 § 5.28.070].

5.44.110 Transferability.

No license granted herein shall be transferable without prior approval of the City Council, and no licensee shall acquire any property rights to the license which may be granted under this chapter without such prior approval. Any proposed transferee must be in possession of any and all licenses and permits required by the Act and any other applicable Federal, State and local laws. Any transfer or attempted transfer of any license granted herein without such prior approval shall constitute a ground for revocation or suspension of any license. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 11, 1973. Code 1987 § 5.28.110].

5.44.130 Declaration filed with quarterly permit and license fees.

A declaration, substantially in the following form, shall be filed with the City Manager on a quarterly basis at such time as the permittee or licensee remits its quarterly fees in accordance with LEMC 5.44.060:

(Indicate one)

A. There has been no change in ownership.

B. There shall be a change in ownership. (Fully explain in detail such change.)

C. The operation of the cardroom is, and at all times during the past quarter has been, operated in compliance with all applicable Federal, State and local laws.

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

(Signed)_______________

Title – Permittee, Managing Director, Authorized Agent, Corporate Officer

[Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 13, 1973. Code 1987 § 5.28.130].

5.44.140 Minimum number of tables.

No license or renewal thereof shall be issued for a cardroom with less than 14 card tables or more than 100 card tables. In addition, no more than 500 card tables at no more than 16 establishments are authorized to operate in the City as a whole. [Ord. 1113 Exh. A, 2003; Ord. 1055 § 1, 1999; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 14, 1973. Code 1987 § 5.28.140].

5.44.150 License – Grounds for denial.

The following shall be considered sufficient grounds for the denial of a request for a license for a cardroom establishment:

A. The unsuitability of the proposed location or the construction or arrangement therein;

B. The applicant, investor or other interested party having previously had a license revoked for any cause;

C. The application does not meet the requirements as set forth in this chapter;

D. The applicant is disqualified for any of the reasons set forth in the Act, as may be amended from time to time, including, without limitation, Section 19859 thereof;

E. The granting of the license would be contrary to the public peace and welfare of the community;

F. The applicants, based upon the examination of the persons whose names appear on the application, are determined to be persons who have been convicted of a felony, or any other crime, which, at the Council’s discretion, may be considered injurious to the welfare of the residents of the City;

G. Failure of the proposed licensee to (1) obtain any and all licenses and permits required by the Act to be held by the licensee and its employees and independent agents; (2) maintain such licenses and permits in accordance with the Act; or (3) otherwise comply with the Act and any other applicable Federal, State or local laws; or

H. The issuance of the permit or license hereunder is objected to by the State Department of Justice, Division of Gambling Control and any successor divisions or agents of the State of California that may have responsibility for, and jurisdiction over, gambling control within the State. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 540 § 2, 1975; Ord. 522 § 15, 1973. Code 1987 § 5.28.150].

5.44.160 License – Revocation or suspension – Procedure.

Any license issued pursuant to the provisions of this chapter may be revoked or suspended by the City Council upon written notice given to the licensee in person or by registered mail, setting forth the ground or grounds of the alleged violation. In the event that notice is given, said notice shall further notify the licensee of the hearing to be conducted before the City Council, setting forth the date, time and place of such hearing. Said notice shall be delivered in person or mailed by registered mail at least 10 days prior to said hearing to the licensee at the address shown in the original application or annual applications. At the time of the hearing, the licensee shall be required to show cause why said license should not be revoked. At said hearing, testimony shall be received by the City Council, both on behalf of the City and any of its officers, agents, or employees or other interested persons as well as testimony on the part of the licensee. At the conclusion of said hearing, the City Council shall make a determination based upon the evidence received, whether the grounds for said revocation or suspension are sufficient or not, and its determination shall be final. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 16(A), 1973. Code 1987 § 5.28.160].

5.44.170 License – Revocation or suspension – Grounds.

The following are considered sufficient grounds for the revocation or suspension of any license granted under this chapter:

A. The nonpayment of any application fee or license fee provided by this chapter or any other fees required by any other ordinance of the City;

B. Failure of the licensee to abide by the provisions of this chapter;

C. Conviction of the licensee of a violation of any law which renders the licensee unfit to continue to participate in the cardroom business;

D. The failure of the licensee to commence an operation of said cardroom business within 180 days from the granting of any license or such additional time as may be specified by the City Council or if the licensee fails to operate said business in a business-like and dignified manner;

E. Failure of the proposed licensee to (1) obtain any and all licenses and permits required by the Act to be held by the licensee and its employees and independent agents; (2) maintain such licenses and permits in accordance with the Act; or (3) otherwise comply with the Act and any other applicable Federal, State or local laws; or

F. If the licensee at any time effects a change in its corporate name, officers, manager, responsible operating manager, stock ownership, or other corporate structure, including any investors, said licensee shall within 10 days from such change notify the City Council and shall receive the approval of the City Council, and the failure to do so constitutes a further ground of the revocation of the license. Further, in the event such change triggers a requirement under the Act or any other applicable Federal, State or local laws to obtain new or different licenses or permits under such laws, failure to obtain such licenses or permits constitutes a further ground for revocation of the license. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 540 § 1, 1975; Ord. 522 § 16(B), 1973. Code 1987 § 5.28.170].

5.44.180 Employee registration – Renewal – Identification.

A. It is unlawful for any permittee and/or licensee to employ any employee without such person having been fingerprinted and photographed by the law enforcement agency of the City, subject to the conditions and provisions set forth in this section. The law enforcement agency of the City is the Riverside County Sheriff’s Department, hereinafter called “Sheriff’s Department.”

B. Any employee employed by any licensed cardroom or card club in the City shall, prior to commencement of such employment, report to the Sheriff’s Department and submit to fingerprinting and photographing for identification purposes. An application shall be made for a work permit at this time, on a form furnished by the Sheriff’s Department. A fee in the sum to be set by resolution of the City Council shall be paid to the Sheriff’s Department to cover the costs of such fingerprinting and photographing and identification card. The employee shall not commence employment by the licensed cardroom or card club in the City until a work permit has been issued by the Sheriff’s Department.

C. A work permit shall be issued by the Sheriff’s Department if the applicant is the holder of, and has supplied copies of, an unrevoked permit issued under the Act within 12 months of the date of the application. If the applicant does not hold a valid permit issued under the Act, in recognition of the delays which may be encountered in obtaining all information on each applicant under this section, the Sheriff’s Department is authorized to issue temporary work permits which shall be valid for a period not to exceed 60 days. If additional time is required, subsequent temporary work permits may be issued which will be valid for the same time period. Such temporary work permits shall include such terms and conditions as may be determined by the Sheriff’s Department. The Sheriff’s Department has the right to refuse issuance of a temporary work permit if preliminary information exists to justify such refusal. If a temporary work permit is issued, the Sheriff’s Department shall issue a (nontemporary) work permit upon satisfactory completion of all background checks and obtainment of all necessary information.

D. It shall be the responsibility and duty of the City Clerk to establish the necessary procedures to implement and process the provisions of this section in cooperation with the Sheriff’s Department.

E. The information received by the City Clerk and the Sheriff’s Department pursuant to the provisions of this section shall be treated as confidential and shall be accessible only to the City Manager, City Clerk, Sheriff’s Department, and to the Managing Director, permittee and/or licensee of the respective licensed cardrooms or card clubs in the City.

F. Each holder of a permit issued hereunder shall obtain from the Sheriff’s Department an identification card, setting forth, at a minimum, the name of the employee and his or her picture. Each employee shall wear such identification card in a conspicuous place attached to the clothing while performing his or her duties at the licensed cardroom. The identification card shall remain the property of the Sheriff’s Department. Any identification cards, papers or permits issued to the employee shall be returned to the Sheriff’s Department upon termination of employment with said cardroom.

G. The Sheriff’s Department shall deny an application for a work permit, or revoke an existing work permit for any applicant who is: (1) disqualified for any of the reasons set forth in Business and Professions Code Section 19859, as may be amended from time to time; or (2) objected to by the State Department of Justice, Division of Gambling Control and any successor divisions or agents of the State of California that may have responsibility for, and jurisdiction over, gambling control within the State.

H. A work permit shall be valid for two years. It shall be renewable at the end of each second year upon filing a new application and a renewal fee, in an amount established by resolution of the City Council. [Ord. 1113 Exh. A, 2003; Ord. 1055 § 2, 1999; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 540 § 3, 1975; Ord. 522 § 17, 1973. Code 1987 § 5.28.180].

5.44.190 Business hours.

Every licensee or permittee shall be permitted to keep said business open for operation for up to 24 hours a day, seven days a week; however, each licensed establishment hereunder shall comply with any hours of operation set forth in the permit issued by the City hereunder. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 18, 1973. Code 1987 § 5.28.190].

5.44.200 Location – Change of location.

A. The location of cardrooms shall comply with the zoning ordinance of the City of Lake Elsinore and meet the requirements of this chapter.

B. Any change in location of a cardroom may be made only after written request by the permittee/licensee to the City Clerk and approval of the new location by the City Council. [Ord. 1113 Exh. A, 2003; Ord. 1055 § 3, 2000; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 19, 1973. Code 1987 § 5.28.200].

5.44.210 Discrimination prohibited.

It is unlawful for any licensee to discriminate in the employment of any person on account of race, color, sex, religion, national origin or ancestry. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 20, 1973. Code 1987 § 5.28.210].

5.44.220 Security and policing.

A. At the option of the permittee and/or licensee, the City Manager shall direct the local law enforcement agency to deputize such person or persons, provided they are acceptable, as may be designated by any licensee for proper security and policing of card clubs licensed under this chapter. Any and all costs for such security and policing shall be borne by the licensee thereof.

B. Each permittee or licensee shall have in effect a security plan to address the security and safety of patrons in and around the cardroom. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 21, 1973. Code 1987 § 5.28.220].

5.44.230 Operation in conformity to laws.

Nothing contained in this chapter shall in any manner whatsoever be construed as permitting any playing of games or gaming prohibited by the laws of the State. Each and all such games to be played shall be operated in full conformity with and subject to all of the laws of the State, and the terms, conditions and provisions of this chapter. Each permittee and licensee hereunder shall comply with the Act and any and all applicable Federal, State and local laws. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 22, 1973. Code 1987 § 5.28.230].

5.44.240 Persons under 21 years of age prohibited.

It is unlawful for any licensee or any other person operating under the provisions of this chapter to permit any person under the age of 21 years to enter into any cardroom. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 23, 1973. Code 1987 § 5.28.240].

5.44.250 Liquor sales.

Any sale of liquor by the licensee or any other person operating under this chapter shall be pursuant to a liquor license obtained from the State of California Department of Alcoholic Beverage Control and pursuant to the rules and regulations adopted thereby. [Ord. 1113 Exh. A, 2003; Ord. 1015 § 5, 1996. Code 1987 § 5.28.250].

5.44.260 City Manager authority – Confidentiality of information.

All applications, fingerprinting reports and financial statements shall be entrusted to the City Manager and shall be held by him or her in confidence, except as necessary for the City Manager to report certain information to the City Council, Sheriff or Commission, or as may be otherwise required by law. The City Manager shall have the right to review the books, papers and records of all licensees to determine the ownership of said licenses as well as to verify all financial statements of any licensee or applicant which he deems necessary to properly administer and carry out the provisions of this chapter. All such investigations conducted by the City Manager shall be confidential except as necessary to inform the City Council, Sheriff or Commission, or as may be otherwise required by law. [Ord. 1113 Exh. A, 2003; Ord. 1009 § 4, 1995; Ord. 718 § 3, 1984; Ord. 522 § 25, 1973. Code 1987 § 5.28.260].

5.44.270 Wagering limits, house rules and posting requirements.

A. No maximum wagering limit is imposed on any game.

B. There shall be posted in a conspicuous place in the cardroom the following:

1. Any and all charges or other fees assessed players at a table;

2. A set of detailed house rules applicable to the games played, which shall be posted in the form of a printed rule book;

3. A copy of the current valid city license/permit and the licensee’s current gambling license issued under the Gambling Control Act as codified in Division 8, Chapter 5 of the California Business and Professions Code; and

4. The hours during which the cardroom will be open for business. [Ord. 1251 § 1, 2008; Ord. 1113 Exh. A, 2003. Code 1987 § 5.28.270].

5.44.280 Abandonment of cardroom license.

A. A cardroom license shall be deemed to be abandoned and null and void under the following conditions:

1. The operation of the cardroom has not commenced within one year after the issuance of the cardroom license.

2. The cardroom has failed to conduct legal gambling for a period of six months.

B. If the City determines that a cardroom license has been abandoned pursuant to this section, he or she shall notify the licensee in writing either by personal delivery or by first class mail addressed to the licensee at the address listed in the license application, or any more recent address furnished to him by the licensee. The notice shall state that the City has determined that the license has been abandoned and is null and void; and the reasons for such determination. The notice shall further state that the licensee may file a notice of appeal of such decision to the City Council by filing such notice with the City Clerk within 10 City business days of the date of the notice.

C. If the licensee fails to file a notice of appeal with the City Clerk not later than 10 City business days from the date of notice, the termination by the City shall become final and conclusive. If a notice of appeal is timely filed, accompanied by payment of an appeal fee, in an amount established by resolution of the City Council, the City Clerk shall schedule the matter for hearing before the City Council. The City Clerk shall provide at least 10 City business days’ notice of the date, time, and place of the hearing to the licensee. [Ord. 1113 Exh. A, 2003. Code 1987 § 5.28.280].