Larry Flynt Loses California Casino Gambling Fight
6 years ago09 Nov
Larry Flynt, the poker-playing porn magnate and casino owner, has lost his bid to be allowed to enter the California poker market after a federal judge âdismissed with prejudiceâ a lawsuit he brought to challenge a California law on organized crime that prevents ownership of out-of-state casinos, according to Courthousenews.com.
Flynt, whose home game is one of the biggest in the world and in which David Oppenheim once lost $1.8million, is the owner of the Hustler Casino and Larry Flyntâs Luck Lady Casino in Southern California, and claimed that an âoutdated state lawâ had prevented him from âinvesting in lucrative casino opportunities in 2014 and 2015â.
U.S. District Judge John Mendez, however, found in his written judgment that Flynnâs claims âfell outside a two-year statute of limitationsâ.
The legal battle revolved around the The Gambling Registration Act, which courtroom news described as being âenacted to keep the mob out of California gambling operations by limiting cardroom operatorsâ financial resourcesâ.
In effect, the legislation prevented what amounted to reciprocal investments - residents with California gaming licenses being unable to invest in âout-of-state casinosâ, with âout-of-state residents who own gambling businessesâ blocked from holding California cardroom licenses.
Flynt and and the father-and-son co-filers of the legal action, Haig Kelegian Sr. and Jr., argued that âthe law has outlived its rationaleâ, adding that âthe mobâ had been been âfrozen out of Nevada casinos for decadesâ â and therefore there was no need to bar operators on such grounds.
As the legal website stated, the argument âcentered on Californiaâs fining Kelegian Jr. $210,000 for transferring ownership of an out-of-state casino to his wifeâ â and although this was described as a âone-time decisionâ, the effect was to prevent the plaintiffs including Flynt, from investing in other casinos.
Flynt who recently offered $10million to anyone who could dish the dirt on President Trump which would lead to his impeachment - argued in court that he might âlose minority holdings in some of his out-of-state adult businesses if they were to add gamblingâ due to California business laws enacted back in 1986, and were seeking to âfind the law unconstitutionalâ.
Mendez rejected the amended complaint, finding they failed to allege continuing harm.
âThe court also finds that any further amendment would be futile and, therefore, grants defendantsâ motion to dismiss with prejudice,â Mendez wrote.
Californiaâs gambling laws are among the messiest in the USA, a continuing stumbling block for the granting of online poker legislation for example, and Flyntâs Attorney - Paul Cambria of New York - has said his clients will appeal the recent decision.
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