Gilbert v. City of San Jose

Plaintiffs, employees of a 40-table gambling establishment known as Bay 101, sued defendant City of San Jose for declaratory relief. They sought a declaration that defendant’s Gaming Control Regulatory Ordinance, which required them to be licensed, was unconstitutional because it transgressed their right of privacy. They alternatively sought a declaration that the ordinance was unenforceable because state law preempted it. The parties filed motions for summary judgment. The trial court granted defendant’s motion and denied plaintiffs’ motion. On appeal, plaintiffs reiterate their arguments. We disagree with plaintiffs. But we modify and then affirm the judgment.

STATE LAW BACKGROUND

California’s Gambling Control Act (GCA) (Bus. & Prof. Code, § 19800 et seq.) states that “longstanding public policy . . . disfavors the business of gambling” but acknowledges that “Gambling establishments are lawful enterprises” that contribute significant taxes and fees to government. (Bus. & Prof. Code, § 19801, subds. (a), (c)(2).) It then goes on to state that “Public trust that permissible gambling will not endanger public health, safety, or welfare requires that comprehensive measures…