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San Jose Card Room Sues City

20 June 2006

SAN JOSE, California – As reported by the Mercury News: "Bay 101 wants San Jose to refund $1.7 million in allegedly illegal fees it's taken from the card club over the last two years, according to a lawsuit the casino filed in Santa Clara County Superior Court on Monday.

"The suit is the latest volley in a battle between the city and card rooms that included the city restricting the casinos' hours and at least four years of litigation.

"In the current suit, Bay 101 alleges the $21,000 per table the city collects annually to pay for background checks on cardroom employees is excessive and unconstitutional.

"…But the city's division of gaming control says conducting background checks on casino managers can take more than six months, representing a substantial amount of staff time.

"…Bay 101 alleges the fees charged by the city are greater than the cost of the services they are supposed to cover, and is asking the judge to stop the fees from being levied in the future. Under state law, any fee that is higher than the cost of the services it covers is considered a tax that must be approved by two-thirds of affected taxpayers…"

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