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 © 2026 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

Blush, 'Drag House Rules' Partner for Pride Month

Blush has been named an official challenge sponsor for OUTtv’s “Drag House Rules” during Pride Month.

Je Joue to Debut Expanded Product Lines at ANME

Je Joue will introduce several new products from its ILY and Je Joue collections at the ANME trade show in Burbank next month.

Orion Expands 'Beau Coeur' Collection

Orion Wholesale has introduced two new pleasure products from its Beau Coeur collection.

FSC: W.V. Age Verification Law Takes Effect June 12

The Free Speech Coalition has issued a reminder notice that West Virginia's age verification law takes effect on June 12, 2026.

Svakom Featured on 'Õhtu!' Talk Show

Svakom is featured in a new episode of “Ōhtu!” on Estonia TV’s Kanal 2.

Wicked Sensual Care Debuts 'Honeysuckle + Ivy' Massage Oil

Wicked Sensual Care (WSC) has introduced its new Honeysuckle + Ivy Sensual Massage Oil.

WOW Tech, XR Brands Reach Settlement in Patent Infringement Dispute

XR Brands and Lovehoney Group subsidiary WOW Tech Group have settled a patent dispute over WOW's Pleasure Air Technology.

Orion Expands 'Beastly Cocks' Line

Orion Wholesale has introduced three pleasure products from its Beastly Cocks line.

Polish Government Proposes AV Mandate for Adult Sites

Poland’s Council of Ministers on Tuesday endorsed a proposed national law that would require sites and platforms to age-verify users to prevent minors from accessing adult content online.

Sliquid Launches B2B Portal 'Sliquid HQ'

Sliquid has launched Sliquid HQ, the company's new B2B portal centralizing its distribution, educational, and marketing resources.

Show More