In the case of Sutter's Place, Inc. vs California Gambling Control Commission, filed in the Court of Appeal of the State of California, First Appellate District, Division Four on April 8, 2024 (case ID: A168427), Sutter's Place sought to increase its number of gambling tables from 49 to 64. The application was denied by the California Gambling Control Commission and subsequently by the San Francisco County Superior Court.
Sutter's Place operates a cardroom in San Jose and had applied for an increase in gambling tables under Measure H. However, the Commission concluded that Measure H did not comply with the requirements of the Gambling Control Act (GCA), specifically section 19961(c). This led to a denial of their application in April 2023.
On appeal, Sutter's Place put forth three arguments: recent state legislation validates San Jose’s ordinance and abrogates the Commission’s decision; the Commission lacks authority to deny a gambling expansion application based on non-compliance with state law; and Measure H substantially complied with section 19961(c). Regardless of any defect in Measure H's form, it should not have been a basis for denying their application.
The court rejected all arguments presented by Sutter's Place and affirmed that there was no error in denying their writ petition. The court emphasized that public trust can only be maintained through strict regulation related to lawful gambling establishments.