Port Asks City to Help Fight Cruise Ship Gambling Ban : Tourism: Lines are scaling back, and officials say the harbor could lose $60 million. Flores will seek council support to lift the new state law.

By LISA RICHARDSON

Jan. 22, 1993 12 AM PT

TIMES STAFF WRITER

Hoping to avert the possible loss of almost $60 million, the Port of Los Angeles is asking the city to help it fight a new state law that bans gambling aboard cruise ships.

The law, which took effect Jan. 1, forces cruise lines either to cut out gambling or avoid some of California’s ports. Port of Los Angeles officials say the measure will eliminate about 50% of their cruise business, depriving the port and the state of millions of dollars in revenue.

If indirect economic impacts are considered--such as the effect on tourism--losses will total nearly $60 million locally and significantly higher than that statewide, the officials say.

“We calculate that (the restrictions) could, conservatively, cost the California ports and cities $82 million in tourism, retail sales and tax dollars, if the cruise lines pull out because they are not permitted to gamble between California ports,” said Karen Tozer, marketing manager for general cargo and cruise services at the port.

The port has enlisted the help of Los Angeles Councilwoman Joan Milke Flores, who today is scheduled to ask the City Council to support lifting the gambling ban. To back her request, Flores will be able to point to signs that cruise lines have been scaling back since the state ban took effect.

Already, Royal Caribbean Cruise Line has decided that its Viking Serenade three-night Baja, California, cruise will reduce its stop at Santa Catalina Island by half and will eliminate all stops at the Port of San Diego, Tozer said.

Norwegian Cruise Lines, which operates the 750-passenger Southward, is considering whether to cut gambling or abandon San Diego and possibly all California ports, she said.

“Both lines are carefully watching the results of their actions in terms of how passengers are reacting, and they have both made it clear that if the bill is not amended and the public reaction is not favorable to the revised operation, they do have the very strong possibility of moving those vessels to other ports outside California,” Tozer said.

San Diego Assemblywoman Dede Alpert (D-Coronado) has introduced emergency legislation to amend the Penal Code to allow gambling on commercial cruises, but her legislation faces strong opposition from Atty. Gen. Dan Lungren.

It is this legislation that Flores today plans to ask the City Council to support.

“It’s going to be really critical that this (legislation) pass, especially since we’re beginning to hear that the Port of Long Beach is looking to establish a world cruise center,” Flores’ spokeswoman Nikkie Tennant said Thursday. “ . . . The governor’s going to be very aware of what’s happening with regard to the state of the economy in this area.”

Under Alpert’s proposal, gambling would be allowed as an incidental part of cruises on legitimate cruise ships. To qualify as a cruise ship, a vessel must stay at sea at least 48 hours, make stops in at least one port of call, and provide lodging and food for all passengers. Alpert’s amendment also stipulates that gambling not occur in California territorial waters, meaning within three miles of the coast.

Lungren and others opposing Alpert’s proposed amendment argue that banning gambling will help thwart organized crime and protect the gambling privileges of California’s American Indians.

But to many passengers, ship owners fear, a cruise is not a cruise without a casino.

“It’s the same way that when people go on a cruise they expect to have huge and lavish meals spread out before them,” Tozer said. “And if you serve them a sandwich, well yes, you’re still feeding them, but its certainly not what they expected.”