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Victory for Larry Flynt in Battle Against CA Gambling Laws

There is good news for the gambling industry after a Californian federal judge found in Larry Flynt’s favor in a case relating to his attempt to expand his gambling industry portfolio.

U.S. District Judge John Mendez denied the state’s attempt to dismiss the case and said that the broad enforcement of the law being contested, an anti-organized crime bill, may amount to regulation of interstate commerce.

The bill was passed in 1986 in order to try to prevent the mob from operating legal cardrooms within the state, thus preventing Californians with gaming licenses from investing in out-of-state casinos.

California gambling laws lawsuit

However, Flynt, the owner of Hustler Casino and Larry Flynt’s Lucky Lady Casino in Southern California, says that the law is not fit for modern times now Nevada casinos and the gambling industry is no longer in the hands of organized crime. Flynt and his co-plaintiffs are arguing that the law is unfairly preventing them from investing in the nationwide gambling industry, which has seen enormous growth in recent times.

Furthermore, Flynt is arguing that the law is unconstitutional, as it has made him miss investment opportunities, and he claims it could force him to divest from his non-gambling businesses if a business partner opens an out-of-state casino.

In his 12-page ruling, Mendez says that the rule needs a closer look. He explained that due to the lack of case law on the statute, he is forced to take a broad interpretation of the law rather than the narrow view that was put forward by the state.

He wrote, “This could, theoretically, prohibit a licensee from forming a business partnership, unrelated to gambling, with a person who has interests in a casino.”

In 2016, the then Governor, Jerry Brown, vetoed a bill that would have exempt the owners of the Hollywood Park Casino from the gambling law. However, at the same time, he said he should “thoughtfully examine those laws and amend them so that all participants in the industry receive the same benefits and opportunities.”

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