Horseshoe dispute may reach settlement

Bill Gang

Tuesday, Aug. 6, 1996 | 11:59 a.m.

A stockholders meeting that could end the family squabble over control of the Horseshoe hotel-casino has been ordered by a District Court judge.

The power struggle had resulted in longtime Horseshoe president Jack Binion having to share his presidency with sister Becky Behnen and complaints that resulting morale problems have diminished profits.

Monday's decision by District Judge Michael Douglas is expected to let Binion become firmly entrenched in the presidency and, perhaps, oust Behnen from the board of directors.

Binion owns the majority of the stock but Behnen has been talking about buying out her brother's interest in the club that their legendary father, Benny Binion, began in the 1950s.

There has been no stockholders meeting to elect a new board for nearly two years. The current board of Jack Binion, Behnen and sister Brenda Michael gives the women voting control over the presidency despite lacking a majority of the stock.

Facing a lawsuit filed by Behnen and amid threats of his ouster as president, Binion filed a legal action to force an overdue stockholders meeting that could secure his position.

As Douglas pondered his ruling, a co-presidency was negotiated giving Behnen and Binion equal authority.

In his decision, Douglas agreed with Binion attorney Morton Galane that Nevada law requires a stockholders meeting if none has been held for 18 months.

Douglas said he considered Behnen's concerns about the casino's operation but concluded that since she didn't allege "any wrong doing" that would occur as a result of a new election of board members, there was no reason to deny Binion's motion.

The order calls for the meeting to be held by the end of September.

Galane said he hopes the family squabble ends with the judge's ruling.

"It certainly would be in the best interest of the Horseshoe and the employees that the dispute end," he said. "I think this would go a long way toward that goal."

He noted that while Binion owns a majority of the stock and seemingly controls every stockholder vote, the corporation bylaws would prevent him from keeping both of his sisters off the board.

In a recent hearing leading to Monday's decision, Binion complained that the Horseshoe hasn't benefited from the Fremont Street Experience as much as other downtown casinos.

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