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HomeBusiness and Professions CodeDiv. 8Ch. 5Art. 4§ 19862 Gambling License Denial Grounds

§ 19862 Gambling License Denial Grounds

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 19862 Gambling License Denial Grounds

Key Takeaways

  • •The government can say no to a gambling license if the casino or expansion would cause too many police problems in nearby towns.
  • •You must prove your casino will make money and that you have enough cash to run it. Everyone can see your money plans.
  • •No casinos or big expansions near schools, churches, playgrounds, hospitals, or other places kids or sick people go.
  • •A big expansion means adding 25% or more gambling tables to what you started with.

Example

A company wants to build a new casino next to a school in a different town.

The government can stop them because casinos near schools are not allowed.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 19862 Gambling License Denial Grounds

(a) In addition to other grounds stated in this chapter, the commission may deny a gambling license for any of the following reasons: (1) If issuance of the license with respect to the proposed gambling establishment or expansion would tend unduly to create law enforcement problems in a city, county, or city and county other than the city, county, or city and county that has regulatory jurisdiction over the applicant’s premises. (2) If an applicant fails to conduct an economic feasibility study that demonstrates to the satisfaction of the commission that the proposed gambling establishment will be economically viable, and that the owners have sufficient resources to make the gambling establishment successful. The commission shall hold a public meeting for the purpose of reviewing the feasibility study. All papers, studies, projections, pro formas, and other materials filed with the commission pursuant to an economic feasibility study are public records and shall be disclosed to all interested parties. (3) If issuance of the license is sought in respect to a new gambling establishment, or the expansion of an existing gambling establishment, that is to be located or is located near an existing school, an existing building used primarily as a place of worship, an existing playground or other area of juvenile congregation, an existing hospital, convalescence facility, or near another similarly unsuitable area, as determined by regulation of the commission, which is located in a city, county, or city and county other than the city, county, or city and county that has regulatory jurisdiction over the applicant’s gambling premises. (b) For the purposes of this section, “expansion” means an increase of 25 percent or more in the number of authorized gambling tables in a gambling establishment, based on the number of gambling tables for which a license was initially issued pursuant to this chapter. (Amended by Stats. 2021, Ch. 45, Sec. 2. (AB 120) Effective January 1, 2022.)

Last verified: January 22, 2026

Key Terms

gambling licenseeconomic feasibility studyexpansionlaw enforcement problemsunsuitable area

Related Statutes

  • § 19855 License Requirement Compliance
  • § 19864 Gambling License Application Requirements
  • § 19875 Gambling License Display Requirement
  • § 19876 Gambling License Renewal Rules
  • § 19814 Gambling Commission Conflict Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 19862.
View Official Source