It was recently announced just a few days prior that Larry Flynt was planning on purchasing the Normandie Casino venue, which is located just a little ways off from Flynt’s Hustler Casino in the city of Gardena, California. However, things have taken a sudden turn as the city has announced that it may be implementing a new gaming tax that would increase the amount that casino properties would need to pay the city in order to stay in operation.
Flynt said that he feels as if he is being treated like a second class citizen due to his announcement that he would be purchasing the card room near his casino. This is due to the city’s decision that they will be changing up the municipal tax obligations that are in place on the venue, which Larry Flynt is none too pleased with.
The venue currently has a 12% standard gaming revenue tax, which is good for gaming venues because they only have to pay large amounts if the business is striving and doing well. However, now the city is changing this around so that both the Hustler Casino and the Normandie Casino will pay a set amount of $800,000 a month. Knowing that the casino owned wouldn’t be happy with the new change, the city did state that they are willing to discount the tax obligation by 12% for months that the casino earns a revenue total of over $2 million. This discount offer doesn’t seem to be quite enough to mull the new potential owner over.
Last week Larry Flynt had spoken with city council members to tell them that he was prepared to walk away from the deal, which would leave hundreds of people without a job in the region. Flynt had already begun to rebrand the venue to match his other property, which would rename it as Larry Flynt’s Lucky Lady Casino.
He also went on to talk about the huge amount of overhaul that would need to be done to the Normandie Casino in order to turn a profit from it. Calling it a “piece of junk”, Flynt stated that he would need to invest at least $17 million more just in refurbishing the venue. He feels as if a grand total of $60 million will need to be spent over the course of four years in expanding the Normandie Casino, not to mention marketing it. These expansions in itself would benefit the city through increased property taxes, and so Flynt feels as if a tax change shouldn’t be needed.
Despite his argument, the city council ended up voting in favor of the new tax plan with a 3 to 1 decision. Unless the decision is revoked, Flynt angrily warned that he will be dedicating his time to replacing the city council members since they are not working in favor of the city of for his own personal interest.