City manager previews draft ordinance to register and fee poker clubs, aims to capture unreported gambling income

City Manager Josh presented a draft ordinance at the Riverside City Council meeting on April 7 proposing a local registration and fee regime for poker clubs and similar “competitive and skilled gaming” facilities.

The measure, described by Josh as modeled in part on Riverside’s licensing for marijuana dispensaries, would require such facilities to register with the city, pay an initial registration fee and an annual operating fee, and maintain records of winners so the city can verify local income tax obligations. Josh said the city would offer an operating credit the following year if the club submitted receipts and documentation showing winners who exceeded reporting thresholds.

The proposal’s stated purpose is revenue capture: Josh told the council that, based on area club prize pools and an assumption of large, frequent events, a single establishment could generate about $300,000 a year in reportable winnings (2.5% of winnings being the city’s local income-tax share under state reporting rules…