April 26, 2007

City Council approves casino games for non-profit fundraisers

San Jose City Council members voted unanimously on Tuesday to allow non-profit organizations to hold fundraisers that allow gambling.

The vote followed a recommendation by Council members Pete Constant and Sam Liccardo asking the City Attorney Rick Doyle to draft an ordinance amending San Jose’s Municipal Code to allow non-profits to use “controlled games for fundraisers at locations in the city other than permitted card rooms.”

The proposal matches a state law allowing such fundraising. Last year, the state passed AB839 amending its Gambling Control Act allowing non-profits to use games of chance to raise funds. Once the city’s amendment is drafted, it will be sent to the state attorney general for approval.

Among those speaking for the recommendation were former Vice Mayor Pat Dando and District 10 Councilwoman Nancy Pyle. Dando, who is now president and CEO of the San Jose/Silicon Valley Chamber of Commerce told the council members that passing this recommendation will help all nonprofit organizations from churches to schools and other organizations.

Dando specifically noted that the law had limited fundraising for the Stroke Awareness Foundation, of which she was one of three founding members.

“We had to cancel a District 10 fundraiser,” because of the old amendment, said Pyle. “Nonprofits are struggling to make up for money, [which has been slow to come in since the dot.com bust]. If there is any way to encourage them to stay afloat,” we should do it, she added.

Pyle was referring to a Department of Justice crackdown on an Almaden Business Association fundraiser back in October 2005. The association had planned to hold a Texas Hold’em tournament to raise funds for the children’s reading area of the new Almaden Branch Library.

While the tournament was a bust, news reports about the crackdown led people throughout the state to send donations. Nearly two weeks later, ABA had nearly doubled its initial goal of $15,000.

—By Carol Rosen