Larry Flynt appears to have won a political standoff over his newly-purchased casino with the city council of Gardena. Larry Flynt had threatened to close the casino and sell its gaming license if the city went through with its economic stipulations.
The adult entertainment executive bought the gaming license for the Normandie Casino on July 7. The Normandie is California’s oldest casino, having been in operation since the late 1940s. Larry Flynt also owns the nearby Hustler Casino, so this is not his first experience with the city leaders of Gardena.
$60 Million Renovation
After he purchased the Normandie, Larry Flynt said he planned a $60 million renovation plan for aging casino, which he plans to rename Larry Flynt’s Lucky Lady. His investments would come over a 4-year period.
Last week, the City Council voted to make promised tax breaks conditional on Flynt paying the city a minimum of $800,000 a month in tax revenues. That is a departure from the traditional tax plan, which is 12% of gross revenues. The twelve percent rate is in keeping with the $800,000 tax rate, but the guaranteed minimum payment offended the founder of Hustler magazine.
Flynt Management Group spokesman Evan Roosevelt said his boss’s issue “wasn’t the amount; it was the monthly guarantee.”
Numbers Behind the Dispute
The Normandie Casino paid the city roughly $9.5 million a year in 2014. The eight hundred thousand dollar payment would exceed that mark by $100,000, so the ballpark figures are about the same.
Still, Larry Flynt believes a special stipulation was being placed on him. If he did not make enough that the 12% tax rate would equal $9.6 million, he should not have to pay that amount.
Campaign against Sitting City Council Members
Flynt appears to have been angered by the strong-arm tactics. He told the Daily Breeze he would campaign against Gardena City Council members in the next election.
A seat came open recently. Paul Tanaka, a L.A. County undersheriff, was sentenced to 5 years in prison for obstrucing an FBI investigation in jailhouse abuses. A special election is likely to be held, though a council appointment could happen.
Second Meeting of the City Council
On Wednesday night, the Gardena council held a second meeting. In the public hearing, the council approved a new economic deal. This time, the $800,000 monthly minimum stipulation was not included.
Roosevelt seemed to be satisfied with the decision. Referring to the Normandie being closed since Monday, the Flynt spokesman told reporters. “We’re hoping to get it [Normandie] open as soon as possible.”
Success of the Lucky Lady’s Opening
In an update on the new era for the Normandie Casino/Lucky Lady, Larry Flynt claimed on July 30 that business had increased by 20% after the change in ownership. Of course, Mr. Flynt gave himself credit for the fresh influx of gamblers — which might have been the case.
Larry Flynt said of the increase in business, “I don’t want to sound disparaging toward the previous owners on the fact that the place has been neglected for decades, but it has. That’s the reason business was terrible. We’re going to have new signage, a $400,000 media program across greater Los Angeles and more. I think the place will do fine.”
It is unknown whether the 20% bump in player activity is attributable to what amounts to a new opening, or whether that is sustainable for the months and years to come. Whatever the case, the Lucky Lady appears to have seen an uptick in customers in a short period of time.
Larry Flynt’s History of Controversy
Larry Flynt is no secret to controversy, of course. The 1996 biopic about the founder of Hustler, The People vs. Larry Flynt, depicts Flynt’s 1988 case before the U.S. Supreme Court, Hustler Magazine v. Falwell. The case ended in an 8-0 victory for Larry Flynt against Rev. Jerry Falwell, after a Hustler magazine cartoon depicted the conservative spokesman in an infamous way.
The Normandie Casino purchase has had its share of controversy. The sign for the new Lucky Lady has received criticism from residents, because it depicts a scantily clad woman.
