In gambling dispute, competing operators contend that Sacramento officials put the cards before the horse

The shadow of Casino Royale’s gambling troubles fell on City Hall again last week, as elected officials ignored a lawsuit over its up-for-grabs license to move a big local player closer to the poker table.

In a unanimous decision April 11, the Sacramento City Council granted a conditional-use permit to developer Steven Ayers, who is planning to unveil an upscale card room in the historic Elks Tower at 921 11th Street. The vote came over the objections of two competing card room operators who sued the city, alleging its city attorney restored Casino Royale’s dead license through improper means.

“The city attempted to revive a statutorily rescinded license,” the operators’ attorney, Dale Campbell, told council members. “The problem here is you can’t do that under the city code. Under the code, it’s illegal.”

Campbell’s clients—Capitol Casino card room owner Clarke Rosa and Parkwest Casino Lotus Room owner John Park—contend that the city should have awarded a new or replacement gaming license through a lottery.

This isn’t the first controversy to sweep up Casino Royale. Owned by James Kouretas and Will Blanas, the card room sparked neighborhood objections, triggered multiple lawsuits and failed to pay some of its winners during its troubled tenure. Casino Royale’s state and city gaming licenses were eventually revoked in 2015.

Meanwhile, Ayers’ plan to bring 24-hour poker tables inside Elks Tower is part of his vision to highlight the building’s Prohibition-era feel. City officials agreed to let Ayers buy Casino Royale’s suspended license, one of only four gaming licenses available in the city.

That didn’t go over well with Rosa or Park, whose lawsuit has yet to be heard. Their attorney attended last Tuesday’s council meeting to appeal the conditional-use permit that the city’s Planning and Design Commission awarded to Ayers. Campbell argued that the decision was premature given his clients’ pending lawsuit.

The council disagreed, and upheld its planning commission’s decision.

A host of residents and business owners spoke in support of the Elks Tower project at the meeting. For his part, Ayers told council members his project would help “continue to build on the renaissance that’s taking place in the city.”

Downtown Councilman Steve Hansen praised Ayers for investing both his time and money in restoring the Elks Tower. Hansen also alluded to his own take on the motivations behind Clark and Rosa’s lawsuit. “I understand why Mr. Rosa would file an appeal,” he said. “Go for the jugular of your opponent.”