Friday, July 21, 2000 | 10:51 a.m.
SUN STAFF AND WIRE REPORTS
Allen E. Paulson, the founder of Gulfstream Aerospace Corp., a casino owner and a horse breeder of some 80 stakes winners, died Wednesday night in San Diego at the age of 78.
Paulson died of cancer in Scripps Hospital Wednesday night, according to a statement released by his family.
Paulson developed Gulfstream, the maker of private jets, in 1978 and became a major player in thoroughbred racing two years later.
In Nevada, Paulson was an investor in Full House Resorts Inc. of Las Vegas, which is working to develop Indian casinos and is trying to develop a Hard Rock casino in Biloxi, Miss. He bought the Gold River hotel-casino in Laughlin in 1996 and renamed the 1,000-room property the River Palms.
In recent years, Paulson canceled a deal to buy Riviera hotel-casino owner Riviera Holdings Corp. and an associated company, Elsinore Corp. The failed deal led to litigation against Riviera in which Paulson settled for $5 million.
A Paulson company, Carlo Corp., also owns a vacant casino barge in Harrison County, Miss.
Alone or with partners, he owned more than 100 stakes winners.
Cigar, Arazi and many other Paulson horses were named after aeronautical check points. From June 1987 through February 1988, Paulson and a crew established 35 international speed records on two around-the-world flights in Gulfstream IVs.
"Horse racing is so much different from other businesses," Paulson once said. "I have never known a business that relied so much on outside luck."
Cigar, bred by Paulson, went on to win 16 straight races, including the Dubai World Cup and Breeders' Cup Classic, equaling Citation's North American record of consecutive wins in the 20th century. He also earned a North American-record $9,999,815 by the time he was retired at age 6 in 1996.
Arazi, owned in partnership with Sheik Mohammed al Maktoum of Dubai, required knee surgery following his sensational victory in the 1991 Breeders' Cup Juvenile at Churchill Downs. In the 1992 Kentucky Derby, Arazi finished eighth as the favorite.
Paulson, who was born in Clinton, Iowa, served in the Army Air Corps in World War II and also worked as a test pilot and commercial airlines pilot.
His career in aviation started at a meager 30 cents an hour as a mechanic for Trans World Airlines where one of his duties was keeping an airplane ready at all times for TWA's eccentric owner, Howard Hughes.
In 1978, he bought Grumman Corp.'s general aviation division for $52 million, turning this struggling jet maker into the top-of-the-line Gulfstream.
"The only way you get personal wealth is to go public," Paulson was quoted as saying in 1983, shortly after Gulfstream started trading. In the offering, Paulson netted $90 million cash and kept shares worth $410 million in Oct. 1983.
A private family funeral was planned with a memorial service also scheduled in Rancho Santa Fe, Calif.
Besides his wife, Paulson is survived by sons Richard, Jim and Mike, and stepdaughter Dominique.
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