San Jose council votes to put gambling expansion on the ballot

John Woolfolk, San Jose Mercury News

With San Jose's budget deeply in the red, the City Council voted Tuesday to put a measure on the June ballot that would allow a dramatic expansion of gambling at the city's card clubs, along with higher card-room taxes that could generate $5 million a year.

The 6-5 vote marked a reversal from two years ago, when the council rejected a similar ballot measure calling for a slightly higher card room tax.

This time around, council members cited concerns about closing a budget gap that has stretched to $116.2 million and may force hundreds of layoffs. Officials also fear that without an agreement to ease city regulations as part of the deal, San Jose's two card clubs may seek state intervention to lift those regulations — or leave town.

Read more: http://www.mercurynews.com/ci_14644839