BELL GARDENS : Study Urges Firmer Control of Casino

City leaders must toughen efforts to regulate the Bicycle Club Casino if Bell Gardens is to continue relying on the club’s gambling revenues as a primary source of income, according to a report released last week by former state Atty. Gen. John K. Van de Kamp.

In the 100-page study, Van de Kamp said the success of the casino is dependent in part on stricter local ordinances and an improved image for the casino, which has been tainted by controversy since it opened in 1984. The study was commissioned by the City Council in February and made public July 17.

The card club, which provides 60% of the city’s revenues, has seen its revenues decline steadily over the past two years.

Van de Kamp, now a private lawyer and consultant, made recommendations in the areas of gaming operations, security, management, marketing and the city’s role. Among his findings:

* The city should formally establish a City Gaming Commission composed of city and club officials. The commission should meet on a regular basis and report its recommendations to the City Council.

* The club should institute a marketing plan to challenge increased competition. The development of a first-class hotel would help attract patrons as well as provide a possible source of separate revenue to the city.

* Officials should conduct an internal audit of the procedures used by security and periodically audit accounting and cash-handling procedures.

* Club management should prohibit the club’s employees from gambling at the club during off hours and discontinue extending substantial amounts of credit to gaming employees.

In February, city officials dismissed City Manager Charles Gomez, partially on the grounds that he played a role in the collapse of city-club relations. The city also began taking steps to update the decade-old city ordinance regulating the club.

The report, based in part on interviews with top city, club and law enforcement officials, specified problems that have contributed to the club’s declining revenues, including competition from newly opened clubs in the region. That has led to a drop in revenues of $100 million in 1992 to $88 million in 1994.

Since 1991 when the federal government took over a 35.6% interest in the club because $15 million in drug money was used to open the casino, the image of the club has deteriorated.

Former club manager George Hardie is under investigation for a profit skimming scam that lead to the conviction of the club’s ex-gaming manager.

The report states that a better city-club relationship could make the federal government’s interest in the casino more attractive to potential buyers. However, even if a buyer for the government interest can be found, it may take up to 18 months before the state could issue an operating license.