Put Casino Plan to Vote, Cypress Residents Urge

Hundreds of residents packed the City Council chambers Monday night to debate a plan to bring a gambling casino to Los Alamitos Race Course.

But speakers on both sides of the issue appeared to agree on one thing: The proposal should be put to a vote of residents. That would ensure that the council, not the owners of the race course, would write the ballot initiative.

“The only concern is whether we should put this on the ballot,” 14-year resident Reynold Elkin told the council. “Please, put it on.”

Two weeks ago, race course owner Lloyd Arnold asked the council to call a special election in June to allow Cypress voters to decide if they want the casino. Under state law, any gambling operation requires the approval of residents.

Arnold said the “Cypress Club” would solve the city’s budget problems by sending $12 million a year into city coffers.

Instead of putting the proposal on the ballot, the council decided to hold a series of public hearings. On Monday, many adamantly opposed it.

“Mr. Arnold is an extremely good salesman,” resident Jerry Matthews said. “You say a new card club would bring millions of dollars to the city. There is a saying: ‘If it looks too good to be true, chances are it is too good to be true.’ ”

Some, however, sided with Arnold, calling his proposal an answer to the city’s financial trouble.

“The question is: Do we raise taxes, cut services or find another source of revenue?” said Alice Rogers. “We have had gambling in Cypress for 40 years. What is the big deal now?”

In addition to the casino, Arnold has promised to build a theater and banquet facility for the community’s use at the race course. He has also vowed to give residents first priority for the estimated 2,500 jobs the casino would generate.

Arnold said he is still considering several locations for the three-story casino, including the current grandstand site. He estimated the cost of construction at $30 million.

If voters approve the plan, the Los Alamitos Race Course casino would be the only legalized card club in the county. A similar plan proposed several years ago in Stanton failed to win support.

Arnold, who bought the race course with a partner in 1989 from Hollywood Park, first proposed building a 24-hour casino on 15 acres he owns next to the course.

At the time, word of the informal proposal filtered out and caused shock waves in some corners of the city. Many residents pleaded with the council not to allow more gambling in Cypress, saying it would bring crime and other problems to their bedroom community.

That proposal, raised two years ago, dropped out of sight until last month.

If the council decides not to put the issue before voters, Arnold can still get it on the ballot by gathering signatures of 15% of registered voters, about 3,500 people.

“We’re going after it one way or another,” Arnold said Monday night.