State Cruise-Ship Gaming Measure Sails Past Senate

Cruise ships that offer gambling will be allowed to sail into ports of call throughout California under an amendment approved Wednesday by the U.S. Senate. The measure could result in several major cruise lines restoring service to California ports.

The new law, which still must be approved by the full Congress and signed by President Clinton, would bring $300 million in revenue to state ports and $90 million a year to the Port of San Diego, said U.S. Rep. Brian Bilbray (R-San Diego), who sponsored the House bill.

The cruise-ship amendment will override a glitch in a 1992 state law banning gambling aboard cruise ships that stop in more than one port on their way to a foreign destination.

“We must restore California’s cruise-ship industry, which has lost more than $250 million in tourist revenue and hundreds of jobs last year alone,” said Sen. Barbara Boxer (D-Calif.), who guided the amendment through the Senate.

The California law effectively prevented gambling ships from stopping at more than one California port per trip.

In response, several cruise lines, including Royal Caribbean, Holland America and Norwegian, pulled out of California ports, taking their lucrative business with them. The cruise-ship industry has grown 600% in the last decade, Bilbray said.

“The state was No. 7 in the world in terms of cruise-ship calls, and now it’s down to 10 or 11,” said Rita Vandergaw, marketing director for the Port of San Diego. “We will benefit immediately. but it will take another 18 months to two years before the state will get the full benefit of it.”

The cities most affected by the new law will be San Diego, Los Angeles, San Francisco and Avalon on Santa Catalina Island.

State officials were reluctant to allow unfettered cruise-ship gambling because they feared Indian tribes would demand equal treatment. They also wanted to avoid so-called floating casinos or “cruise ships to nowhere.”

The amendment approved Wednesday was attached to a Federal Aviation Administration funding bill, which is expected to be approved by the full Congress within the next two weeks. Then it goes to President Clinton for his signature.

“If the bill passes Congress and gets the president’s signature, we would have ships in San Diego within weeks,” Vandergaw said.

Under the bill, ships once again would be allowed to provide gambling between two California ports. Cruise ships offer blackjack, roulette, craps, bingo, slot machines and other games.

Port of San Diego officials say cruise companies that specialize in shorter excursions would benefit the most.

The companies have trips down the coast of California and Mexico. But they have been restricted to one California port of call per cruise unless they leave the country and come back.