Appeals Court: Larry Flynt's Lawsuit vs. Cal. Gambling Bureau May Proceed

Appeals Court: Larry Flynt's Lawsuit vs. Cal. Gambling Bureau May Proceed

LOS ANGELES — The United States Court of Appeals for the Ninth Circuit ruled that three gambling licensees may bring claims over the California law prohibiting anyone holding a cardroom license in the state from owning more than a one percent interest in out-of-state gambling establishments.

The case is known as “Flynt vs. Shimazu,” after a plaintiff, veteran adult publisher Larry Flynt, and Stephanie Shimazu, director of the California Bureau of Gambling Control.

The Ninth Circuit, according to today's report by CEB's Katherine Proctor, held that “the case falls within California's statute of limitations under a ‘continuing violation’ theory.”

In 2014, the California Gambling Commission ordered a licensee to pay a fine for violating the law. The plaintiffs’ complaint, according to Proctor, alleges that “the law is facially unconstitutional under the Dormant Commerce Clause, which prohibits states from unjustifiably regulating and discriminating against interstate commerce.”

The current appeal stems from a district court decision dismissing the suit filed in 2016 on the grounds that the plaintiffs’ claims “exceeded California's two-year statute of limitations.”

In its opinion reversing that ruling, wrote Proctor, the Ninth Circuit held that “the plaintiffs' claims fall within the statute of limitations because the alleged harm is not the result of the Gambling Commission's 2014 decision but of ‘the continued existence of the statutes themselves and the realistic threat of future enforcement.’”

Paul Cambria, who represented the plaintiffs, declared himself “pleased with the decision, because it clearly is in line with the facts and the law, and the law in other circuits around the nation.”

“I look forward to going back to District Court and having our lawsuit revived,” added Cambria.”

For Katherine Proctor’s “Gambling Licensees May Proceed With Case For Investment in Out-of-State Casinos, Ninth Circuit Holds,” click here (behind paywall).

Copyright © 2024 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

Age Verification: FSC's Mike Stabile Reports from the Frontlines

Two years into the religiously-inspired crusade to ban free access to adult material in the U.S. through carefully drafted "age verification" legislation, the constant onslaught of state-by-state proposals and laws — many of them copied from each other — can be hard to follow.

Holiday Products Signs Distro Deal With Emojibator

Holiday Products has signed a distribution deal with pleasure brand Emojibator.

SWPA to Hold Facebook Live Event Next Month

The Sexual Wellness Professionals Alliance (SWPA) will be holding a Facebook Live event on May 1 at 6 p.m. (PDT).

Judge Acquits Backpage Defendants of Most Charges Before 2nd Retrial

A federal judge acquitted former co-owner of Backpage.com Michael Lacey and two co-defendants on most of the counts remaining from the protracted trial launched against the website operators by the Justice Department in 2018.

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp this week signed into law a bill that includes provisions requiring age verification for viewing adult content in Georgia, mirroring legislation being sponsored around the country by anti-porn religious conservative activists.

Honey Play Box Signs Canadian Distro Deal With EP Products

Honey Play Box has signed a deal with Canadian distributor EP Products.

Cherie DeVille Discusses Doc Johnson Collabs in Vice TV's 'Sex Before the Internet'

2023 XBIZ Performer of the Year Cherie DeVille is featured on Vice TV’s “Sex Before the Internet,” discussing her Doc Johnson celebrity strokers in the episode “Sex Toy Empire.”

Neon Coyotes Releases 'Day Collection'

Neon Coyotes has debuted its latest drop of BDSM wear, the Day Collection.

Ashley Manta Appointed Sexual Wellness Curator at Bspoke

2020 XBIZ Sexpert of the Year Ashley Manta has been appointed a curator of sexual wellness brands and events at Bspoke.

Aylo Asks Judge to Trim Sweeping GDP-Related Lawsuit

Aylo asked a California federal judge during a hearing on Monday to drop trafficking claims from a sweeping lawsuit brought by a former GirlsDoPorn model.

Show More