ADMINISTRATION'S RESPONSE TO "AUDIT OF THE CITY'S Cardroom regulatory oversight function. It would appear that there is a loosening of regulatory oversight by the City. The Card Room ballot measure would raise the cardroom tax rate on gross revenues from 13% to 15%, allow each cardroom to seek City approval to increase the number of tables from 40 to 49, remove the limit on the number of permissible card games by permitting any card game allowed under State law consistent with city regulations and increase the current $200 betting limit to that allowed under State law. Further, the City Manager cites recent cooperative spirit that the Administration and cardrooms worked under to address some workplan items and advance a successful Cardroom Ballot Measure. EXPANSION = revenue to the City