How about allowing casino gambling in downtown L.A.?

Some think it would help Convention Center activity

Several groups of gaming industry representatives and business people are buzzing about the notion of bringing casino gambling to downtown Los Angeles.

No formal proposals have been made and no one seems to be spearheading a movement to legalize gambling downtown. The only discussions have been among downtown business people who are toying with the idea of "site specific" gambling operations -- gambling limited to specific hotels or casinos, not all of downtown or the city.

According to several sources, the idea of casino gambling has also been linked to getting a major hotel built next to the newly expanded and renovated Los Angeles Convention Center, on Figueroa Street several blocks south of the central downtown area.

Mayor Richard Riordan has met with proponents of downtown gambling, and Deputy City Attorney Tony Alperin was asked, informally by city councilmembers, to research the law regarding casino gambling in Los Angeles and the state.

The verdict: State law would have to be changed to allow full-fledged casino gambling, and a citywide popular vote would be needed for approval.

But casino operators reportedly believe the day will come. "The Caesars, the Hiltons, Steve Wynn at the Mirage -- they all say that, sooner or later, everything legal in Nevada will be legal in California," said one politico. "The question is where, and who first?"

The struggle to get a large hotel built next to the Convention Center has been ongoing since the mid-1980s, with poor economics always looming as a seemingly insurmountable hurdle.

Many consider a new, large and close hotel a key to helping the Convention Center land conventions. And without gambling, many say downtown Los Angeles has a paucity of attractions.

But the three-year-long Convention Center expansion project has been completed -- at a cost of $500 million to city taxpayers. In a recent interview, Mayor Riordan estimated additional annual losses to taxpayers at $40 million to $50 million unless the center becomes successful.

Much of the public talk about casino gambling has come from the Central City Association of Los Angeles, a group that represents downtown business interests. The 70-year-old association has about 250 members who represent just about all of the major downtown businesses, as well as law and accounting firms.

Don McIntyre, president and chief executive officer of the association, said the group has not taken any formal position on casino gambling in downtown Los Angeles.

"As the full-time staff director, I have been monitoring what has been happening around the country with other cities permitting casino gambling," he said. "I've been keeping our executive committee apprised of what's going on because there seems to be a sense that maybe this is something we should at least consider."

McIntyre said at some point the association probably will take some kind of action on the idea. He noted that right now there probably wasn't enough support among association members to pursue the idea.

"There are a lot of issues involved in something like this but I guess my feeling on it is that, given the economic state of our city, county and state, it's something we should look at. You know, Californians spend about $2.5 billion a year in Nevada casinos. That's a lot of money going out of state," said McIntyre.

None of the people involved in the talks said they knew of any involvement by Los Angeles city officials in the possibility of casino gambling downtown.

Spokespeople for Los Angeles Mayor Richard Riordan did not return a phone call for comment.

In an interview with the Business Journal in March, Riordan said: "A lot of people have talked to me about that (casino gambling in Los Angeles)." He declined further comment.

In recent years a growing number of municipalities, regions or states have considered casino gambling as a way to raise revenues.

It is now permitted in Nevada, Atlantic City, N.J., and on Indian reservations in 20 states, including California.

Currently, casino gambling is not allowed in almost all of California, although the Morongo tribe, on its land near Palm Springs, has begun construction on a full-fledged casino.

Card clubs are permitted in several municipalities, however, including Bell Gardens and Commerce in Los Angeles County. Card clubs differ from casinos in that only card games are permitted and players bet against other players in games of skill rather than in games of chance against the house.

Several cities, regions or states are considering legalizing casino gambling, including Philadelphia, Boston and Miami. In New Orleans, casino gambling has been approved for the city's old convention center. And casino gambling on riverboats has been approved in Illinois, Missouri and Louisiana.

Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., said he has been involved in some of the discussions about casino gambling.

"There's no doubt that we need that hotel downtown but whether gambling is the way to go, I don't know. It raises some very interesting questions that have to be seriously considered because, wherever gambling goes, it changes the face of the community," he said.

Saul Leonard, president of his own hospitality and gaming industries consulting firm in Century City, said casino gambling is a proven revenue producer.

"Gambling in downtown Los Angeles would make money for the operators and for the city," he said. "It would bring a lot of people downtown. Economically it would be a success but there are a lot of other questions that have to be asked because gambling creates a certain environment that is different than any other place."