Head of Poker Parlor Pushes to Build Political Fund

Amid a struggle to redraft California’s century-old gambling law, the head of the largest poker parlor in the state has formed a political action committee to raise campaign money for state lawmakers who might vote for legislation favorable to the gambling industry.

In a one-page memorandum obtained by The Times, Bell Gardens Bicycle Club general manager George Graham Hardie has asked the club’s 1,850 employees to contribute as much as $2,500 each to Californians for Better Business Practices, a Los Angeles-based PAC that was organized June 5.

Memo to Employees

“There is an opportunity for us to develop a strong grass-roots political organization dedicated to protecting the card club industry and the Bicycle Club from negative change,” Hardie wrote to employees in a June 8 memo.

Bicycle Club workers--ranging from dealers who make up to $200 a night in tips to busboys who earn $4.25 an hour--were asked to write personal checks payable to the PAC and deliver them to Kathy Vingino, a club administrator and president of the political committee.

Several Bicycle Club employees approached for comment about the fund-raising drive declined to be interviewed. But a source in the club who requested anonymity said that many workers were disgruntled over being asked to contribute.

In fact, a handwritten message scrawled across the top of a copy of Hardie’s memo offered a sign of the discontent. It said: “This is extortion. ‘No pay, no job,’ Hardie said at employees meeting. Stop this man.”

Hardie confirmed that he held several meetings to inform employees about the formation of the PAC. But he said that he has heard nothing but enthusiastic comments about the political group. “We made it very clear that it was voluntary,” he said.

So far, the PAC has collected almost $80,000, including contributions from an estimated one out of four employees, some gambling club investors and various supporters of the industry, Hardie said in an interview.

The money will allow him to “continue to support candidates (who) we feel have an ear to our interests,” he said.

The PAC, formed in part to cope with limitations established by Proposition 73, is part of a wider effort by Hardie to expand his influence in politics and gambling industry issues in Southern California.

For instance, Hardie, 55, a former harness race driver who is also mayor of Cathedral City, is leading a campaign to establish a poker parlor in that Riverside County city. His interest in the card club industry came after an unsuccessful drive in 1976 to legalize greyhound racing in California.

As head of the state’s largest casino, he also has spearheaded efforts over the years to make more casino card games legal in California, such as Texas hold ‘em, five-card and seven-card stud and three controversial Asian games.

Dispute Over Law

In the memo, Hardie called the PAC necessary because of an ongoing dispute between card club operators and law enforcement officials over how the state’s gambling law should be rewritten.

“As you know, the laws under which the Club operates are not clear-cut,” Hardie wrote. “As you know, law enforcement officials would like to restrict the playing of as many games as possible.”

The law, last amended in 1891, is so out of date that it includes descriptions of card games that club operators say no longer exist, such as fan tan and hokey pokey. State lawmakers have tried for almost four years to pass a gambling law that would update and clarify what casino card games are allowed in California.

Among other things, the two sides have fought over the legality of three high-stakes Asian games: pai-gow, which is played with dominoes; and its derivatives, Asian poker and super pan 9, which are played with cards. The games provide as much as 50% of total gambling revenue, club officials have claimed.

But attorneys for the Los Angeles County Sheriff’s Department and the California Peace Officers Assn. have argued that the three games violate state law, and have gone to court to challenge a judge’s ruling permitting the games.

As an outgrowth of the struggles between law enforcement and gambling industry officials, attorneys for the Southland’s seven poker parlors and officials of the cities where the clubs are located persuaded state Sen. Robert G. Beverly (R-Manhattan Beach) to sponsor a bill last March that calls for updating the gambling law.

The new gambling statute would outlaw pai-gow --a concession that Hardie and other card club operators said they are willing to make as long as Asian poker and super pan 9 are allowed. The proposed new law would also allow clubs to give away jackpots ranging from $100 to $70,000, a practice to which officials of the California Peace Officers Assn. object.

Because of that objection, the bill has been stalled in the Senate Governmental Organizational Committee until at least January, 1990, aides for Beverly said. “There’s no way that it would pass (out of the committee) right now,” Beverly aide Judy Smith said.

Concern for Legislation

Fearing that the bill will eventually die for lack of support, Hardie told employees that “it is therefore more important than ever that we maintain a friendly relationship with our state legislators” through campaign contributions.

“In the past, the club has been able to support our political friends without restriction,” Hardie wrote. “That will now change,” he added in reference to Proposition 73, the 1988 law that limits campaign contributions that donors can give to candidates.

By forming a PAC, Hardie created a vehicle to give the largest sums of money allowed under Proposition 73. Under that law, individuals are limited to donations of $1,000 and small political committees can contribute up to $2,500 per official. Political action committees, on the other hand, can contribute up to $5,000 a year for each lawmaker.

The tradition of giving is not new to the Bicycle Club, which donated $38,000 to state and county officials last year--the largest amount of money contributed by a California card club, according to statements filed with the secretary of state.

Assembly Speaker Willie Brown topped the list of recipients at $14,000 from the Bicycle Club, said Caren Daniels-Meade, spokeswoman for the secretary of state’s office. Assemblyman Richard E. Floyd (D-Carson) received $7,000 and Assemblyman Tom Bane (D-Tarzana) received $6,000 from the casino, Daniels-Meade said.

Other Recipients

Assemblywoman Lucille Roybal-Allard (D-Los Angeles) received $1,750 in a March, 1988, campaign contribution, and state Sen. David A. Roberti (D-Los Angeles) received $1,400, according to Daniels-Meade.

State Sens. William Campbell (R-Hacienda Heights), and Ralph C. Dills (D-Gardena) and Assemblymen Frank Hill (R-Whittier) and Curtis Tucker (D-Inglewood) each received $1,000, according to campaign statements. Tucker died last year and his son, Curtis Tucker Jr., was elected this year to fill the seat.

State Sen. Herschel Rosenthal (D-Los Angeles) received $800 and state Sen. Barry Keene (D-Benicia) received $500, Daniels-Meade said.

The Bicycle Club also contributed $1,600 to Los Angeles County Supervisor Peter Schabarum, Daniels-Meade said.

Other local casinos and card club operators have contributed to lawmakers, with the second-largest contributor being the Huntington Park Casino. It gave a total of $9,600 to lawmakers between May, 1986, to Sept., 1987, financial records indicate.

Beverly has not received any money from gambling interests, campaign records indicate.

Hardie said that, so far, the PAC officially represents only the Bicycle Club but he has been soliciting support from owners of nearby clubs. The California Bell Club, the Huntington Park Casino and the Commerce Club all lie within two miles of the Bicycle Club, which does $16.1 million in business a year. Of that, it turns $9.5 million over to Bell Gardens and is the city’s largest source of tax revenue.

Amassing campaign contributions, Hardie said, is one way to ensure success for what he called “entrepreneurial projects” such as casino construction and operation.

“I learned not to get involved unless you have some bullets, some ammunition.”