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November 6, 2018 — California General Election
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City of Cudahy
Measure U - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results


2,527 votes yes (79.02%)

671 votes no (20.98%)

100% of precincts reporting (8/8).

To fund city services, including public safety and emergency services; park and street maintenance; and recreational programs; shall the City increase the license tax on casino licenses and other gambling operations to 15% percent of total monthly gross gaming revenues with a required minimum license fee of $10,000 per month to raise a minimum of $120,000 per year or more depending on the level of gross gaming revenues?

What is this proposal?

Measure Details — Official information about this measure

Impartial analysis / Proposal

Rick Olivarez, City Attorney

The 2018 Cudahy Casino Tax Measure (the “Measure”) amends the City of Cudahy’s existing tax on casino licenses and other gambling operations by establishing a 15% percent tax on total monthly gross gaming revenues with a minimum tax of $10,000 per month. Because the tax is structured as a “general tax” within the meaning of Proposition 218, its proceeds may be used for any governmental or public purpose, including, but not limited to, the construction, maintenance and repair of public infrastructure like streets and parks; recreational programs; departmental staffing; police and fire safety services; code and parking enforcement services; and other unrestricted general revenue purposes.

Precisely how much money the tax will raise will depend on the number of casino licenses that may be issued for operations in the City of Cudahy (“City”) and the amount of gross gaming revenues generated by such operations if they were to come into existence. It is believed that at a minimum, however, the tax will generate $120,000 per year in general tax revenue. It should be observed that passage of the Measure does not mean a casino will ever be built in the City. The establishment of a casino will require separate approvals that are not granted by passage of the Measure.

Because the proposed tax is structured as a general tax, it must be approved by at least a simple majority (50% plus 1) of votes cast by Cudahy voters at the City’s General Municipal Election of November 6, 2018. If the Measure fails to receive this minimum percentage of required “Yes” votes, the Measure will fail and the City’s existing tax will remain the same.

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

Vote YES on the Cudahy Casino Tax Measure, which will update the City’s existing gross gaming revenue license fees to increase the license tax on holders of licenses for casinos and other gambling operations from a graduated tax up to 13% to a 15% flat fee tax with a $10,000 monthly minimum fee from the owner / operator. Changing to a flat tax at an increased rate will simplify the gross gaming revenue tax structure and increase revenue received from gaming services.

As the gambling business continues to evolve, the City needs to maintain modern and coherent rules and regulations to stay competitive in the gaming industry. License fees are paid by corporations owning casino licenses, ensuring they contribute their fair share to the community. It will not create a burden on local residents.

Revenues from casino license fees can be used to fund Cudahy services such as sidewalk and street maintenance, City programs, emergency preparedness, implementation and emergency services.

YES on the Casino Tax Measure will ensure that our families enjoy safe streets and parks, supported by adequate staffing of police, fire and emergency services personnel, and will result in faster response times. The Casino Tax Measure will also result in higher quality parks, streets and recreational programs.

YES on the Casino Tax Measure will generate approximately $120,000 per year, which will help the City achieve the following:

1)Maintain a variety of City services so that Cudahy families can more fully enjoy their leisure time and quality of life;

2) Save lives by improving the City’s Emergency Preparedness Plan implementation and emergency response personnel; and

3)Maintain City streets so residents can enjoy greater safety and convenience.


Deputy City Clerk

City Manager

Arguments AGAINST


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