Flynt Files Federal Lawsuit to Expand Casino Operations Beyond Calif.

Flynt Files Federal Lawsuit to Expand Casino Operations Beyond Calif.

SACRAMENTO, Calif. — Hustler founder Larry Flynt, eager to diversify his business holdings and invest in several casinos across the country, has filed a federal lawsuit claiming that a California statute placed into law under the guise of crime prevention has unfairly cost him money.

The suit against the state of California and Attorney General Kamala Harris, among numerous other state agencies, claims that because Flynt owns a pair of cardrooms in Southern California he is precluded from striking casino ownership deals past the state line.

According to California Business and Professions Code Section 19858, an individual who has an ownership interest in an out-of-state (or foreign) gaming entity of more than 1 percent can’t operate a card club in California. Section 19585 was an attempt in 1986 by lawmakers to keep organized crime out of California gambling operations by limiting cardroom operators’ financial resources.

In the suit filed Wednesday, Flynt claims Section 19858 is discriminatory and imposes a criminal law barrier to otherwise lawful interstate investment. He also noted that he has “forfeited the opportunity to invest in numerous out of-state casino-style gambling entities to his financial detriment.”

The adult entertainment mogul and Southern California casino operator revealed in the suit that he has explored gambling investment opportunities in Las Vegas; Laughlin, Nev.; Reno, Nev.; Cripple Creek, Colo.; and Tunica Miss.

“Mr. Flynt was and remains unable to make any sort of investment in those entities in excess of a one-percent ownership investment lest he surrender his California cardroom gaming licenses, which he would be forced to do,” the suit said.

Flynt owns Hustler Casino, Larry Flynt’s Luck Lady Casino, both in Gardena, Calif., and is in the works to purchase another casino in Cudahy, Calif.

He said in the suit that Section 19858 has outlived its purpose because casinos are now thoroughly regulated in order to sniff out organized crime holdings.

Flynt was joined in the suit with co-plaintiff Haig Kelegian Sr. and Haig Kelegian Jr., who have interests in Southern California’s Bicycle Club, Commerce Club, Crystal Casino and Ocean’s 11 Casino.

Flynt and the other plaintiffs note that the state has enacted laws to allow exemptions from ownership restrictions and that publicly traded corporations that own casinos in other states are operating tribal casinos throughout California.

California allows certain types of gambling, including poker and other non-banked card games where gamblers play against each other and not the house. The state has different rules for tribal casinos, which are allowed to operate banked-card games and slot machines, and also allows residents to bet on horse racing.

View Larry Flynt's lawsuit

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Honey Play Box Introduces 'Vibrosa' Egg Vibe

Honey Play Box is debuting its new Vibrosa app-controlled egg vibrator.

XBIZ 2026 Conference to Debut All-New Company Lounges, Community Track

The event website for XBIZ 2026 is now live, offering information about North America’s largest adult industry conference, set to take place Jan. 12-15.

Maria May Makes Her WIFEY Debut

Creator Maria May stars with her husband Jeff, Hollywood Cash, and Jamie Knoxx in the latest release from Vixen Media Group studio imprint WIFEY.

ProDx Health Joins The Play as New Testing Partner, Launches 'Play Safe' Kit

ProDx Health has joined lifestyle organization Play LA as its new testing partner and marked the partnership with the launch of its Play Safe kit.

Cliterature Expands Pleasure Product Collection

Cliterature has expanded its collection of pleasure products.

Alexis James Stars in Latest BAM Visions Scene

Alexis James stars alongside multi-XMAs winner Mick Blue in a new scene co-directed by Blue and Maestro Claudio, aka BAM Visions, from Evil Angel.

Charlotte Sins Performs Her 1st Gangbang for Adult Time

Charlotte Sins performs her first gangbang in the latest release from Adult Time.

Cutting Edge Testing Joins PASS as New Partner

Performer Availability Screening Services (PASS) has added Cutting Edge Testing (CET) as a new testing partner.

Andylynn Payne, Emma Rosie Topline Joey Silvera's 'Trans-Active 32'

Andylynn Payne and Emma Rosie headline director Joey Silvera’s “Trans-Active 32” from Evil Angel.

Mymember.site Integrates VR Functionality

Mymember.site has added virtual reality playback capability to its website management platform.

Show More