{"id":37657,"date":"2016-07-23T10:00:34","date_gmt":"2016-07-23T17:00:34","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=37657"},"modified":"2016-07-22T12:41:30","modified_gmt":"2016-07-22T19:41:30","slug":"larry-flynt-v-gardena-to-infamous-publisher-in-casino-squabble","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/larry-flynt-v-gardena-to-infamous-publisher-in-casino-squabble\/","title":{"rendered":"Larry Flynt v. City of Gardena Goes to Infamous Publisher in Casino Tax Squabble"},"content":{"rendered":"

Infamous publisher\u00a0Larry Flynt<\/a> won his squabble with the city of Gardena in Southern California this week. The battle was around a disputed economic package for his Hustler and Normandie casinos.<\/p>\n

Flynt purchased the Normandie, the Golden State\u2019s oldest card club, earlier this month, after its previous owners had run into licensing difficulties. Members of the Miller family<\/a>, whose father Russ Miller opened the club in 1947, had their licenses revoked after being convicted on federal money laundering charges in January.<\/p>\n

\"Larry
Gambling king Larry Flynt, who has been a paraplegic for almost 40 years since a courthouse sniper shooting in 1978, gets what he wants in Gardena, as he prepares to transform the Normandie Casino into Larry Flynt\u2019s Lucky Lady. His net worth is estimated at about $500 million. (Image: richestcelebrities.org)(Image: George Steinmetz\/Corbis)<\/figcaption><\/figure>\n

Convicted felons are unable to operate a gaming establishment by law, and there were fears that the iconic club would close for good unless a buyer was found quickly. But Flynt, whose Hustler Casino is less than a mile away, stepped in, purchasing the Normandie for an undisclosed sum.<\/p>\n

Flynt says he will invest at least $60 million in renovating the old club, before reopening it as \u201cLarry Flynt\u2019s Lucky Lady Casino,\u201d as well as re-employing the Normandie\u2019s 400 or so workers.<\/p>\n

Threatens to Bail Out<\/h2>\n

But Flynt became infuriated when the City Council voted to grant\u00a0tax breaks to the Lucky Lady only if he agreed to pay a minimum of $800,000 a month to the city from both casinos. The going rate of taxation had previously been 12 percent of gross revenue, and in 2014, the Hustler and Normandie collectively paid around $9.5 million to the city.<\/p>\n

The proposed deal of at least $800,000 per month would equate to $9.6 million a year, but it wasn\u2019t the amount, it was the monthly guarantee that Flynt objected to.<\/p>\n

\u201cThat makes absolutely no sense at all,\u201d Flynt told the Daily Breeze, <\/em>a South Bay news source. \u201cThat\u2019s a proposal only a fool could sign and I\u2019m no fool. You can\u2019t guarantee revenues. In my 50 years of business, I\u2019ve never heard ever of a deal like that.\u201d<\/p>\n

Workers Support Flynt<\/h2>\n

Unwilling to renege, Flynt gambled. Knowing that his two casinos, the only two left of the once-thriving Gardena card club scene, were among the biggest contributors of revenue to the town, he threatened to bail out of the Lucky Lady for good and sell the license if the council didn’t back down from its dictums.<\/p>\n

Supporting Flynt at a City Council meeting last Wednesday were former members of the Normandie\u2019s staff, desperate to preserve their jobs.<\/p>\n

\u201cPlease kindly think about we have families that depend on us and they are looking forward to good living. Right now we cannot provide for them because we are not working,\u201d casino employee Fatima Nelson told council members. \u201cPlease kindly sign this deal because, if you do that, you\u2019re going to put food on our plates.\u201d<\/p><\/blockquote>\n

The gamble paid off, and the case of the City of Gardena versus Larry Flynt quickly crumbled.<\/p>\n","protected":false},"excerpt":{"rendered":"

Infamous publisher\u00a0Larry Flynt won his squabble with the city of Gardena in Southern California this week. The battle was around a disputed economic package for his Hustler and Normandie casinos. Flynt purchased the Normandie, the Golden State\u2019s oldest card club, earlier this month, after its previous owners had run into licensing difficulties. Members of the […]<\/p>\n","protected":false},"author":42,"featured_media":37671,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,18],"tags":[],"acf":[],"yoast_head":"\nLarry Flynt v. 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