An End to No-Limit Hold'em at Lucky Chances

As of Wednesday, December 14, Lucky Chances Casino in Colma, Calif., no nonger spreads no-limit Texas hold'em. Under pressure from the California Department of Justice's Division of Gambling Control, the city of Colma passed an ordinance establishing a $200 maximum bet ceiling, and Lucky Chances managment chose to voluntarily comply.

This means an end to the fabulously juicy baby no-limit hold'em games Lucky Chances began to spread in April, 2004, as well as the much bigger $1000-minimum- buyin game they've spread for much longer.

The issue is the California Gambling Control Act, which took effect on Jan. 1, 1998, four months before Lucky Chances opened. Among other things imposed a moratorium in the expansion of gambling in cities lasting until 2010. Lucky Chances' opening was explicitly exempted by the CGCA. Not long afterwards, the city of Colma, with the express approval of the Division of Gambling Control, removed the city's ordinance that imposed a $200 betting limit, and Lucky Chances introduced no-limit hold'em.

Artichoke Joe's Casino, in nearby San Bruno, lost a lot of business when Lucky Chances opened, and lost more when the Colma bet cap was removed. It seems that customers have a idiosyncratic preference for competent dealers, consistency of decisions by floor personnel, and quality of food. Dennis Sammut, owner of Artichoke Joe's, did what any savvy business owner does when customer service issues result in a drop in business: he complained to the Division of Gambling Control. After five years of legal maneuvering, the DGC reversed itself and sent a letter to the city of Colma informing them that lifting the $200 bet cap violated the moratorium on expansion of gambling in cities. At length, the city, and Lucky Chances, have opted to comply.

The story isn't over yet: According to the San Mateo County Times the Colma City Council voted to lift the betting limit if one of three things happens: state law is changed to allow it; the city wins a court challenge of the DGC's ruling; or if a majority of Colma voters approve the removal of the betting limit.

The San Mateo County Times article will disappear behind a firewall shortly. See more below the fold.

City agrees to casino betting limit

But move could cost city $1.8 million annually
By Julia Scott, STAFF WRITER

COLMA — Faced with the possibility of the city's only casino losing its license for violating state law, the City Council voted Wednesday night to voluntarily impose a state-required betting cap — but they also gave themselves an out.

In July 2005 — six years after the state Division of Gambling Control expressly approved a City Council ordinance removing upper betting limits on all card games at Lucky Chances Casino — the Division sent the town a letter informing it that its unlimited betting violated the California Gambling Control Act. The letter asked the city to reduce its individual betting maximum to $200 on poker and Asian games like Pai Gow.

The law took effect Jan. 1, 1998 — four months before the opening of Lucky Chances. It prohibited "expansion of gambling" in existing casinos, which state officials say includes unlimited betting.

Now, faced with losing 16 percent of their annual budget because of the limit, the City Council is calling the language of the Act confusing and its application arbitrary, since Artichoke Joe's Casino of San Bruno continues to enjoy unlimited betting with state approval. They point out that the state division, part of the Attorney General's office, did not find fault with unlimited gambling when Lucky Chances opened in 1998.

"For seven years, we've had this practice. For seven years, the state never said anything to this town," said City Attorney Roger Peters.

The city stands to lose as much as$1.8 million annually as a result of betting caps. The casino generates about $3.7 million a year for the city — one-third of its total budget.

"The money has become the town's backbone in terms of our ability to provide services," said Assistant City Manager Laura Allen.

Confronted with a number of possible penalties, including loss of the casino's license, the City Council voted unanimouslyto limit betting to $200 on Wednesday. At the same time, however, they voted to revoke those limits if a state bill is passed allowing it; if the town were to win a legal challenge against the state; or if a majority of Colma voters overturned the limits. The town has not yet asked a judge to rule on the matter, but it has hired a lobbyist to meet with legislators in Sacramento.

The council decided to hold a special meeting early next month to authorize a citywide vote on the issue. It was not clear what legal weight a vote would carry, since the Division has said it would violate state law if it were to become effective before the year 2010.

The council also passed an ordinance to consider language proposed by Lucky Chances to skirt the new limits by placing more betting squares on the tables, thereby increasing maximum betting limits. The casino voluntarily introduced $200 betting caps on its poker and Asian games for the first time on Wednesday.

Division of Gambling Control spokesman Nathan Barankin said that his agency first learned of Colma's unlimited betting from their Bay Area competitors. Those competitors were allowed to continue unlimited betting because they had received their licenses before the creation of the Gambling Control Act, whereas Lucky Chances had not. Posted by abostick at December 16, 2005 09:05 AM