In Cudahy, Where Club Falters, Voters to Decide on Gambling Repeal

Voters in this square-mile city go to the polls Tuesday to decide if they made a mistake in 1982 when they legalized card-club gambling.

A four-line measure calls for repealing most of a 1982 gambling ordinance, except for a provision that permits church and charity bingo, acting City Atty. Glenn R. Watson said last week.

The vote comes four weeks after two pro-gambling City Council incumbents were ousted in a bitter election, in part because of their steadfast support of real estate developer Charles R. King. Five years ago, King unveiled bold plans to place the world’s largest card club in Cudahy. But his Silver Saddle Casino opened for business only three months ago, and with four gaming tables instead of the 100 originally envisioned.

In the years since passage of the gambling ordinance, which was approved by a 2-to-1 margin, many Cudahy residents have soured on the issue.

“I really feel like the city is fed up with this,” said Georgia Scrivner, a 70-year-old retiree who has led the drive to get gambling outlawed once again. “If Mr. King had kept all of his promises and built a nice casino . . . I think it would have been great.”

But for a variety of reasons, King has yet to produce the volume of business that officials once predicted would create $1.9 million in tax revenue each year. Since opening in mid-February, King has paid the city $15,357.14, city officials said. His next monthly installment, which is supposed to be no less than $10,000, is due Thursday.

“I think that we’re going to win the election,” said Scrivner. “I think people are going to vote ‘Yes, we do not want gambling in Cudahy.’ ”

Gambling proponents like Lynwood Evans, one of the councilmen defeated last month, argue that taxpayers will only hurt themselves if they turn their backs on the potential revenue that card clubs can generate. Evans said voters are being stampeded into deciding the issue on an emotional basis.

“It has created an aura of hate that I think is bad. . . . People have turned against friends,” Evans said. “It’s not that they want to do away with casinos, it’s that they want to do away with Chuck King.”

Evans said even if voters repeal the gambling ordinance, he doubts that it will affect the Silver Saddle. “I think he (King) is grandfathered in” considering “all the money he’s put out,” the former official said. “Somebody in the city would be open to one hell of a lawsuit if they tried to do away with” King’s casino.

King could not be reached for comment last week.

City Atty. Watson said he believes repeal of the gambling law would at least technically block King from operating legally. But the lawyer declined to rule out the possibility that King might find another way--perhaps through direct City Council action--to keep the Silver Saddle open.

Questions have also been cast over King’s ability to stay open, regardless of what happens in the special election. In recent months, he has been unable to make timely payments on a mortgage securing the two-acre card-club property at Wilcox Avenue and Patata Street, which he purchased for $541,000. At one point he was $60,000 behind in payments, according to an attorney for the former property owners.

Ticor Title Insurance Corp. was set to foreclose on May 1, but recently decided to postpone any action until Aug. 5 by “mutual agreement between the two parties,” a Ticor spokeswoman said. City Manager John Porter said King recently told him that he was making payments to the title firm.

Times staff writer Lee Harris contributed to this report.